So in both of these situations they have 10,000 shares

let's say this is a publicly traded company.

And the equity holders get wiped out, the old equity holders.

Now what's our mantra of this day and age I wonder?

He'll be impaired a little bit.

My guy says he can get greg's stock portfolio by the end of the week.

And you could keep rearranging the securities so that none of these guys ever know that their stock is borrowed.

And we also assign a value to the company given by the operating revenue.

And there are different models which allow you to compute the control you get from ownership.

She has a 10 percent interest in the company.

OK, so now we analyzed the structure, so how does this relate to the control?

And the links represent the shareholding relations, so shareholder A has x percent of the shares in company B.

This wouldn't be realistic, normally it would be something in the 100s or 1000s of shares or maybe even more than that.

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

I'm a geologist, got out of school in '51, and I've been in the industry my entire life.

So I have to make it look, or at least the broker is going to force me to make it look like this guy still owns the share.

Well that means the people who own a stake in the company, or the shareholders, they share this piece.

So what did we find after computing all this network control?

My father holds the major interest in the corporation.

And it gets even more extreme.

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

Kary Mullis They might have done it for the teddy bear, yeah.

Not the old shares.

And what does that mean?

So instead of 160, he now has 110 and he has a share of IBM.

I don't give it to my employees.

In the next step, we built the network around these companies, so we took all the TNCs' shareholders, and the shareholders' shareholders, etc., all the way upstream, and we did the same downstream, and ended up with a network containing 600,000 nodes and one million links.

And the way you do that mechanically is that you borrow the stock.

It's the split of just the equity part right over here

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

So the angel investor owns one million, not out of two million shares like he used to.

because they're both on the right hand side.

I'm the sole shareholder.

John laid claim to the painting.

NSA considered that device their personal property.

You still claim guilty ?

So if this company becomes worth a lot.

And if there wasn't enough money to pay all of the debt holders, then the equity holders got nothing.

This is the building.

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

He laid claim to the land.

The shareholder's meeting was held.

where access is better than ownership.

And it's been a great motivator.

Instead of famine, hidden until it is too late, we detect it, and we respond.