So you've probably heard not only the term earnings, you've probably also heard the term earnings per share.

So what they do is they just take your earnings number and you divide by the number of shares.

So this is trailing 12 months earnings.

But in this case, you literally just take the price of the stock and you divide it by the earnings per share.

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

Now Coke has a very clear bottom line they report to a set of shareholders, they have to turn a profit.

So let me switch colors just to ease the monotony.

How do you hold the sovereigns of cyberspace accountable to the public interest when most CEO's argue that their main obligation is to maximize shareholder profit?

Stock investments do not always yield profit.

It's just a faster way of saying

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

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

This is really important to pay attention to, because so many people say, oh, a company made this much.

But here you see it means very, very different things.

And at least it'll give you a sense of how revenues, gross profit, operating profit, pre tax income and net income really are different.

Our interests clash with theirs.

Minus 500,000.

Its owner shall guard it profitlessly

Either they are going to unlock an awful lot of economic opportunity and make a percentage on all of it or it's all going to crash and burn, which is tough on their shareholders.

This is what the owners of the company get before they pay the government.

(Laughter) But I know it's the bottom line, or one's perception of it, that motivates people in the end.

Kill the goose that lays the golden eggs.

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

Ownership has its privileges.

looks neutral.

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.

A benefit to both our worlds.

I'll just abbreviate that as Nl.

Go ahead, eat.

And when people talk about earnings of a company, this is what they're talking about.

We're just a couple of guys in a chat room.

And that's my dad found that.

That's still way more expensive than most companies.

He still owns 7 of the company.

So a lot of people immediately will figure out the Price to

So in 2013 you'll be making 16.

And that's what these brands did.

FDlC insured.

The rewards would be... enormous.

They buy more of your service and they tell more of their friends, which leads to more profit.

And let's say, assume if I inherited this million dollars, I didn't finance it.

If I'm paying 10 today for 2 of earnings in 2009, the Price to Earnings of 5 for Company A.

I'm the sole shareholder.

The reason this is happening boils down, in my mind, to one basic problem, which is our inability to perceive the difference between public benefits and private profits.

This is 350,000 of net income.