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?

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

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

liabilities plus equity.

So something interesting here, and some people often talk about the notion of dilution, right?

So this is my liabilities.

So 26 minus 23 is equal to 3.

And you get a 6 billion market cap.

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

He lost a lot of money in the stock investment.

We're now moving into East Africa.

Our liabilities are still 3 billion.

I use 100 gold pieces.

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

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

So 5 million of liabilities.

because they're both on the right hand side.

let's say this is a publicly traded company.

Other current assets.

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

This is the building.

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

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

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

He made a killing by investing in the stock market.

You have 3 billion of assets, 4 billion of liabilities, this is actually minus 1 billion of equity.

So essentially, whoever lent Loan C, all of these shares are now their shares.

He's a stockbroker.

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

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

It could split the Special Purpose Entity into a million or ten million shares and then sell those shares to investors.

So you'd have 20 million left.

And I'm going to earn, or I'm going to grow just because

And equity securities you're probably familiar with.

Let's think a little bit about leverage.

And this is called the equity, or the owners' equity.

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

It's actually horrible.

And they can say like, this VC can say oh, you know what?

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 is a customary contraction like our

'Company.' It is a customary contraction like our

We take 7.5 million from this seed venture capitalist.

goodness.