Then, you can buy back the stock

goodness.

What I can do is, I can then just go out there and buy my shares of IBM back, right?

And then the stock actually go down. Iets go all the way down to 20, you think that's about how far it's gone go down

Stockbroker.

Stockbroker?

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

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

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

But what I want to do in this video is make it a little bit more tangible, to really understand exactly what you're buying when you buy a share of stock.

So let's say the share price today is 12.00.

The sell side are the people who do analysis and say, hey due to my analysis isn't this a good stock?

But here you are able to sell it and buy it later for a lower price so the situation were the end prices 20 dollars

And that's often done with an initial public offering.

So let's say this company has let me do it in mauve so this company's shares, let's say it has 1 million shares.

And we'll buy, how much do you need?

Pete, you need to buy my one share back from me, so what Pete does, is he would give me back 180, so the total NAV would lose 180, so it would go down 180, so we would take this out of it, 1,800 180 is 1,620, and they would buy back a share from me.

The ask is what someone has explicitly said they're willing to sell a share for.

The book value is 6.00, but the market saying no, no, no, we are willing to pay 12.00 per share for one of those shares.

Let me see if I can draw that in.

If you want your 180 back we'll buy that we'll give you 180, you give back the share, and then we cancel the share and if anyone wants to add to the fund if they want to invest the corporation can create new shares and then issue it to people sell it to people and their money would go into the common pool and the management company would take fees off of it

We take 7.5 million from this seed venture capitalist.

They invested in us.

So after unwinding this whole thing I used 50 of this 100 to buy the shares back.

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

Now shares of IBM only cost 50, right?

And when the government of Singapore, or any investor, wants to buy new shares, they use the market value, what that stock is trading at, as a good reference point for what you might have to pay for those shares.

I want to sell the stock for as much as possible.

I'm just buying that share from another guy.

And then, when the stock starts to move up they get scared and they buy it, and it causes the stock to move up even more.

Normally, before you sell something you have to buy something

I took the recommended chemoterapy

They probably took some fees or sold the loans for slightly more than they issued the loans for.

Let me wirte this columns here, this is shorting, this is the short option

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?

But his real intent is to maybe gamble with it on the side in the pizzeria's name, and maybe invest in stocks or speculate on pork belly futures or something like that.

SCOTT Inc.'s stocks are blue chip stocks.

He lost a fortune in the stock market.

They've never made money.

But all he sees is the past, right?

And that's a real example, in which have lost millions if not billions of dollars.

And just to contrast this with bonds, because they are often used in the same phrasing, oh I'm going to go buy some stocks or bonds, or I deal with stocks and bonds.

When you normally buy a stock on an exchange, as the New York Stock Exchange, you're just buying the stock from somebody else.

It's actually horrible.

And just as an example, I said well let's say that Bank A is a public company.