Our liabilities are still 3 billion.

He lost a lot of money in the stock investment.

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

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

He invested his money in stocks.

He made a killing by investing in the stock market.

Other current assets.

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

He invested a lot of money in stocks.

He invested 500,000 yen in stocks.

All of these sovereign wealth funds, they've got burned, because they invested in Citibank last year and the stock just continued to plummet.

Stock investments do not always yield profit.

And you hear these a lot.

I think it was at 7.50 a share.

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

They walk up with me. Every year all the money in the bank goes to their broker.

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

He invested his money in stocks.

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

The big investor bought up the stocks.

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

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?

We're now moving into East Africa.

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

He invested two hundred dollars in a growing business.

Let's say it sells a million shares.

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

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

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)

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

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.

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

So this is my liabilities.

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

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

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

So far we looked at open end mutual fund that can kind of grow and shrink depending on how many investors want to invest in that fund and they can grow by creating new shares and selling those shares to general public and they can shrink because someone who wants their money back goes to the fund and said

I can make cupcakes too and I have some money to build a factory.

I have these 200,000 shares.

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

Right?

Most of the time, that dollar I gave to buy that IBM share, just goes to a guy who sold an IBM share.

But before and after this round, that angel said oh, your shares are worth about 5 per share.

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.

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