They buy more of your service and they tell more of their friends, which leads to more profit.

With trade, there's mutual interdependency and mutual gain between parties.

A benefit to both our worlds.

And when people talk about earnings of a company, this is what they're talking about.

Utilities are still rewarded when their customers waste energy.

So EBlT, I kind of view that it goes backwards.

War does have its benefits...

Even if it benefited the publishers, it was a creative right and author's right.

And at least it'll give you a sense of how revenues, gross profit, operating profit, pre tax income and net income really are different.

He mediated between the two parties.

Minus 50,000.

This is really important to pay attention to, because so many people say, oh, a company made this much.

So you've probably heard not only the term earnings, you've probably also heard the term earnings per share.

We know how much it takes to build our product.

These are the only people who really have, arguably the sophistication and the time and the monetary incentive to really look and scrutinize what management is doing.

But the government is going to essentially write them a 2 billion check so they can get their billion dollars back.

And then I'll do a more philosophical video on why these things even exist, and why they're useful, and why people may benefit or may not benefit from these things.

So not only do you have health benefits, you have environmental benefits.

It became this economic sanctuary, where they could do penance for their profit making tendencies at five cents on the dollar.

The pie's getting bigger because these are real investments that are going to benefit my village.

And then if you subtract your costs from your revenue, or if you just add these two numbers, because this one is negative, you have your gross profit.

But what do you do when the two come into conflict and you're forced to make a decision that either is in Britain's interest, or the interest of Britons, or citizens elsewhere in the world?

Ten percent of all future profits from his solo venture.

Company A made 1 per share. 1 of EPS.

I need both parties.

Yep, that's right.

Then the companies or those factories or whatever you want to think of them,

Kill the goose that lays the golden eggs.

And you'll hear these numbers, gross and operating profit and net profit and pretax profit, and it's very hard to understand that these are actually very, very different things, because they all have the word profit, and what does gross and operating and all that mean?

Turns out Singapore and Hong Kong are cities that made huge gains on the value of the land that they owned when they got started.

They allotted the profits fairly.

So what they do is they just take your earnings number and you divide by the number of shares.

No one wants it to go off.

let me do that in that same color and they both have 20 thousand dollars of equipment so their assets are the same the things that are actually generating the revenue and the profit are the exact same thing we're assuming that they are also renting in very similar locations that's what would have to happen for them to have such similar economics.

It's good for everybody.

So this is trailing 12 months earnings.

And this is the profit from the operations of the company, or you could say from the assets or from the business or from the enterprise of the company.

Minus 500,000.

And then they'll say well in the most naive interpretation of things, you net income in theory should be the cash you're getting or at least it's some type of profit you're getting assets in the door or at least you're counting as if you're getting some assets in the door.

But again, fun is not enough.

It looks like we lost 200.

But in this case, you literally just take the price of the stock and you divide it by the earnings per share.

Just because I know that these guys like me.

Two different parties with common interests were on the warpath when he cut in to settle the dispute.

Go ahead, eat.