And there's only 10 shares. So they're valuing the assets at 500,000. And this is of course the market value of the assets.

And you take out the liabilities, this is what the assets are worth according to the accountants.

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)

And there's a whole methodology to how one would account for that.

We're willing to say that the market value of your equity is 210,000.

They're the share of owner's equity and not of the asset also gives you a good sense of what market cap is

And why don't you like them as much?

And then on the equity side, because we have no liability, so in this case assets will be equal to equity.

I'm worth 11,000.

You probably heard of this concept.

What's going on in Nigeria? A couple of things.

The real estate market's booming in Rio.

No matter how bad it was economically, he always got himself paid.

Like its agriculture,

So that's a very handsome return.

And we'll introduce debt later, because that's another variable that a lot of people don't think about when they

There's no market.

But the market value or assets is essentially, what is the market saying the assets are worth?

So here investors are valuing this company at 1 times a million shares.

So let's call that market equity.

I think that's what I wanted a write here, market value of equity.

Phuong, I'm not a rich man but I do have assets.

Liquid means it's very easy to buy and sell those securities in large quantities.

liabilities plus equity.

Here, I deliberately chose this because it is a man buying a vegetable.

This is 120,000 in equity, market value of equity, he has another 105,000 in liabilites.

But our total assets, or the market's perception of the total assets of the company, are essentially what it's willing to pay for the equity plus the liabilities, so the market is saying that Ben's assets, the assets in that company are worth 220,000.

That's the European average for new cars.

Well I would have 50,000 left over.

Interest is nothing but rent.

And the federal bank will get these notes into circulation by going out into the market and buying assets.

So its assets.

And what happens in bankruptcy?

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.

And then, that gets you to the market value the equity.

So they're saying essentially that the market cap, and that's equivalent to the market value of the equity, or what the market thinks the equity is worth, that's 1 times 500 million shares.

I'll do that in yellow.

That assets, A for assets, is equal to

left hand side of the equation.

House 1, house 2, house 3, house 4, and house 5.

You want to identify who your customers and markets are, and you have, but you now want to size the market,

So what is the value per share?

We can do this.

This line would have disappeared.

So it would be patent amortization.