But it is just like a stock.

There might be a whole other class of investors here, say this guy.

So a security in the equity world is a stock.

When you go long a security, you're buying the security.

And also, just so you know, as opposed to being short the company, they're long.

And it really started because this whole process of being able to take a bunch of people's mortgages together, package them up, and then turn them into securities and then sell them to a bunch of investors this was a quote unquote innovation in the mid '90s, or early '90s.

A security is essentially something that can be bought and sold that has some type of claim on something, or some type of economic value.

So let's make some very simple assumptions for ourselves.

Word is that davis' fund has taken some big hits on mortgagebacked securities.

This guy worked for the S.E.C. who tried to take down Frobisher.

This guy worked for the sec for 20 years. He was a lead investigator who tried to take down frobisher.

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.

Or by selling shares of itself, or essentially allowing other people to become partial owners of it, and that is equity.

And this guy's an investment bank instead of a commercial bank.

Andrew,you'll analyze the SEC filings.

They'd start with your bonds preferred stock, and then move on to real estate.

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

And I'm doing this just to show you a point

We said before any of this stuff on the top existed, the pre money valuation of just our idea was 5 million.

It's worth 5 million.

Our liabilities are still 3 billion.

And of course the pre money valuation is just you just take the pre money valuation plus the amount of cash they're giving us.

Even the worst boy in your school is the super A plus when it comes to marriage material.

I make are to the bank.

But essentially what happened is the investors in the mortgage backed securities provided the money to the special purpose entity to essentially loan to the borrowers.

So it's a very different scenario depending on what our pre money valuation is.

The amount of money you get.

Annual rate of security

But this matters a lot, right?

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

It seems the government's looking for Harry.

It's a security.

You know what equity securities are, and just so you know, what is a security?

We essentially sold them at 10 a share.

Do Low Interest Rates Ensure High Asset Prices?

There's a problem here though. The rating agencies, the ones that in theory should be independent, they've only given a company A a BB rating. This is a pension fund.

learning only too late that something was wrong.

And it makes sense.

And you end up with a mortgage backed security.

Mortgage backed security.

Investment

They will give this money to the market, and in exchange they will usually buy treasury securities, sometimes something slightly different, but usually very safe securities.

High utilization will allow you to raise prices and when you raise price you'll get a better return on your asset, and then the other side effect is, when you have that high return on asset, you'll also have more investment going on to build more capacity.

Malibu Equity and Investments.

So 107.84, or 107.84.