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

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

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

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.

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

Not the old shares.

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

He'll be impaired a little bit.

In a world without leverage so if I didn't have all this

What kind of fugitive?

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

Ownership has its privileges.

liquidate it.

Handing the reigns to aa stump!

The yield on the bond is 6 .

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

So this is trailing 12 months earnings.

He still owns 7 of the company.

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

I'm the sole shareholder.

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?

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)

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

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

My new balance you will look like this 150 and 150.

This is what you're valuing it at.

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.

(Applause.)

And whatever's left, people are paid with actually shares new shares of the company.

So you can imagine a world where GM goes bankrupt.

So 5 million of liabilities.

I don't give it to my employees.

liabilities plus equity.

Periods per year

Periods

But I have let's see 700 of liabilities.

Should Shareholders Be Kings?

And then each of these guys would get 5.00.

because they're both on the right hand side.

So the current yield curve looks something like this.

So they also should get limited downside in the event things should turn bad.

Usually as you get more and more junior and you take on more risk, you get more upside, or more interest.