Now what's our mantra of this day and age I wonder?

I think that's 10 shares. Well that's my intention.

And the equity holders get wiped out, the old equity holders.

So, remember, assets are equal to liabilites plus shareholder's equity, so if all of a sudden the market value of the equity, the market capitalization, for Ben's shoe company is 215,000... (That is the equity part right over here)

So what did we find after computing all this network control?

Our liabilities are still 3 billion.

He'll be impaired a little bit.

So if we believe all of these numbers, and we know that

It's actually horrible.

And I think this is very obvious to you, but let me write that down.

If you believe all of the numbers on the company's balance sheet, the company is worth 3 billion.

The stock got creamed when they got wind of the dilution.

The Dow Jones average posted a gain of two points today.

So this is this 3 billion of equity divided by the number of shares.

So what you do is you multiply these numbers to figure out, what is the market value or the market capitalization of the company?

And the equity's 1 million, because there's no debt, so all of the assets are held by the equity holders.

And I have a publicly traded price, so on any given day,

I mean, you're a computer with arms and legs, and capable of doing all sorts of things.

Stock Chart

And the way you get that is, they're saying 3 a share and there are half a billion shares.

It has 500 million shares.

Stock prices dropped.

So another way to think about it, in exchange of him putting 400 into this corporation, he gets 4 shares, or each share is worth 100.

But what's the situation where, let's say that on that day of trading, the share price is that 3.00 per share.

I'd like to know...

It is of great value.

But, actually, it's suddenly come to me after years working in the business, that what we create in advertising, which is intangible value you might call it perceived value, you might call it badge value, subjective value, intangible value of some kind gets rather a bad rap.

The value of the yen has risen greatly.

Manhattan that they bought 50 years ago that they have it on the books for 0.50.

The government is essentially writing a 2 billion check to the equity holders of this company.

So we lost 1 billion of our book value.

Stocks fell hard.

Stock prices fell quickly.

Stock prices fell sharply.

Make the clock inaccessible.

And just to kind of tie it a little bit with what we did in the first video, if we have a million shares, the book value of the equity is 5 million, so if we say the book value per share is just going to be this number divided by the million shares I have.

This is the book value for a share.

It's classic pump and dump.

I own the controlling stock of the Messenger.

Democracy is the only game in town.

So that means if all of these numbers are correct, then the stock of that company is worth 6.00 per share.

And while there's many differences in some senses, they will share more and more in common with each other.

By applying the same price to earnings, we're saying that the market value of this equity is 210,000, while the market value of this equity is what was it? 189,000.

How did the stock offering go?

She was cheated into buying worthless stock.