They have investors, they have shareholders. Shit like that.

Arthur frobisher told his employees to invest in the company and then sold his own stock.

Arthur Frobisher told his employees to invest in the company and then sold his own stock.

He invested his money in stocks.

He invested his money in stocks.

On the equity side of the equation we just have four million shares.

I think it was at 7.50 a share.

And of that share, we have 2 million shares outstanding.

liabilities plus equity.

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

He invested a lot of money in stocks.

He invested 500,000 yen in stocks.

Our liabilities are still 3 billion.

Let's say it sells a million shares.

The big investor bought up the stocks.

I'm talking about the situation where you had Pete, and Pete said

He lost a lot of money in the stock investment.

I use 100 gold pieces.

So 5 million of liabilities.

I'm bringing 5 million cash to the table,

They write these research reports because they want to go to institutional investors or people who have their brokerage accounts with these banks, and essentially sell them stock.

because they're both on the right hand side.

Because based on what this pre money valuation is it tells us how many shares, or what percentage of the company, our angel investor gets for investing his 5 million.

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)

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

This is the building.

These kinds of things play out in lots of bad ways in humans.

If what we had before is worth 5 million and there were a million shares initially, then the pre money valuation

So now the Special Purpose Entity is the owner of the mortgages .

I owe these people that money is 700 and my equity is 300.

He invested two hundred dollars in a growing business.

I feel secure when I invest in stocks but not bonds.

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

So this is the investors.

And we allow entrepreneurs to share a percentage of their revenues.

And then, let's say, we have several time periods.

He can invest a million yen in stocks.

I have these 200,000 shares.

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

The amount of money you get.

While qualified persons qualified persons are interested in investing and have money to invest.

less capital intensive that there's less money that's required

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

Right?

No major investor will consider us.