When they assign a 120,000 market cap there...

And then what's left over, which is essentially so this is 2 million of equity, and then you'd have 2 million of equity here this 2 million of new equity, right?

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)

What happens in a closed end fund is that all of the investors are essentially

Let's think a little bit about leverage.

And there's 10 million individual shares.

So 26 minus 23 is equal to 3.

Our liabilities are still 3 billion.

Because the balance sheet is often called the company's books.

goodness.

liabilities plus equity.

The board of directors of a firm is essentially elected by the shareholders.

We're now moving into East Africa.

Stockbroker.

Stockbroker?

In a world without leverage so if I didn't have all this

So I made 50 off of this trade.

We take 7.5 million from this seed venture capitalist.

And then the bank sets up a special purpose entity.

If I buy a share of IBM a lot of people say, oh, I saved I saved my money,

let's say this is a publicly traded company.

I use 100 gold pieces.

Today we talk of people as an asset.

I'm going to keep that 2 billion in there.

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

He lost a lot of money in the stock investment.

And what is required is a combination of physical capital, institutional capital, human capital and security, of course, is critical, but so is information.

So this is my liabilities.

because they're both on the right hand side.

They invested in us.

They don't want to be the last guy holding the potato.

I put it in, I don't know, maybe I'm a good investor.

So 5 million of liabilities.

The advantage the country had was human capital nothing else but human capital.

This is the building.

The investment bank at least starting off with all of the shares of the Special Purpose Entity.

I think I originally set in the original video that we have 500 million shares.

And then the equity is, essentially we would look at this formula.

So the shareholders' equity, or you could almost say the book value of the equity of the company, is 5 million. 5 million equity.

It can do it by borrowing money, which is debt.

Other current assets.

But it's really a measure of the same thing.

If it had 10,000 shares, and actually both of the shoe companies had 10,000 shares, then the market is essentially valuing the equity of Ben's shoe company at 215,000, even though the book value of the equity was 135,000.

He's a stockbroker.

SCOTT Inc.'s stocks are blue chip stocks.