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

Our liabilities are still 3 billion.

It's actually horrible.

So this is this 3 billion of equity divided by the number of shares.

So what you do is you multiply these numbers to figure out, what is the market value or the market capitalization of the company?

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)

They've never made money.

I think that's 10 shares. Well that's my intention.

By applying the same price to earnings, we're saying that the market value of this equity is 210,000, while the market value of this equity is what was it? 189,000.

And I have a publicly traded price, so on any given day,

So another way to think about it, in exchange of him putting 400 into this corporation, he gets 4 shares, or each share is worth 100.

Sometimes called the market cap.

Well, what's the market cap?

When they assign a 120,000 market cap there...

And going price on those exchanges

So that means if all of these numbers are correct, then the stock of that company is worth 6.00 per share.

And the way you get that is, they're saying 3 a share and there are half a billion shares.

The stock, which was valued. at 1½, now has a par value of over 9 a share.

So if we believe all of these numbers, and we know that

They're saying it's worth 5 million.

And I think this is very obvious to you, but let me write that down.

So this is interesting.

And let's say that there are 100 million shares.

They've never made money.

The last closing price for Ben's stock was 21.50 share

So the question is what makes up the gap here? when we think about the market value of the equity.

And it's something interesting here.

The Tokyo stock market recorded an unprecedented loss.

What this says is look if each of those 10,000 slices of the equities are worth 21.50 then the entire equity portion is going to be what the market is valuing it at 215,000

So, in this situation, let's think about this situation where the stock price goes down

But before and after this round, that angel said oh, your shares are worth about 5 per share.

We take 7.5 million from this seed venture capitalist.

Stock Chart

It has 500 million shares.

He's a stockbroker.

SCOTT Inc.'s stocks are blue chip stocks.

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

The Dow Jones average posted a gain of two points today.

And maybe this guy's even growing faster, so maybe they're being conservative by only giving this guy a 10 price to earnings.

So we lost 1 billion of our book value.

This is the book value for a share.

It's classic pump and dump.

It is a customary contraction like our

'Company.' It is a customary contraction like our

And the equity's 1 million, because there's no debt, so all of the assets are held by the equity holders.