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

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

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

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

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

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

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

(Laughter)

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

Ownership has its privileges.

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.

He still owns 7 of the company.

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

I'm the sole shareholder.

What kind of fugitive?

Because all of a sudden instead of having 500 million shares, you maybe have 2 billion shares.

He'll be impaired a little bit.

And anyone doing that is helping to reduce the volatility in the stock.

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

Fortythree percent of reserves.

And then each of these guys would get 5.00.

because they're both on the right hand side.

And then there's me and my buddies, we split the last, that first million shares five ways.

I own the controlling stock of the Messenger.

So here the nodes are companies, people, governments, foundations, etc.

The shareholder's meeting was held.

And it's been a great motivator.

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

Yes, I'm a stockholder.

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

But they come back.

This is the building.

Uh,we were wondering about one of frobisher's shareholders.

Harboring and transporting fugitives?

let's say this is a publicly traded company.

So 5 million of liabilities.

I don't give it to my employees.

Not the old shares.

liabilities plus equity.

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

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

Shareholders are going to go after the rest of Frobisher's fortune.

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)

But 99 of the time, when you buy a share, it is not going to the company.

So the broker always has let's say each of these is a share of IBM.