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

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

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

And they can say like, this VC can say oh, you know what?

This guy made 21,000 this year.

Because the balance sheet is often called the company's books.

He's a stockbroker.

SCOTT Inc.'s stocks are blue chip stocks.

It is a customary contraction like our

'Company.' It is a customary contraction like our

It's actually horrible.

We take 7.5 million from this seed venture capitalist.

goodness.

Stockbroker.

Stockbroker?

And all of that's great, and it's fine.

They've never made money.

So... what do we need to make this work?

It could split the Special Purpose Entity into a million or ten million shares and then sell those shares to investors.

And you?

I think they're CFC.

little premium over it.

And equity securities you're probably familiar with.

What do you know about his personal life?

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

Well, what's the market cap?

And you need another 10 million to really pump up the marketing.

Yesterday's turnover on the stock market was 500 million shares.

let me draw the shares, so there is one, two, three, four, five shares.

let's say you owe 800,000 on your loan.

It's dubai.The market is just opening there. I'm sorry.Excuse me,please.

Divided by 10,000 shares is 2.10 per share.

And that's a bit of an arbitrary notion.

This allowed us to assign a degree of influence to each shareholder.

If I buy a share of IBM a lot of people say, oh, I saved I saved my money,

And then what's left over, which is essentially so this is 2 million of equity, and then you'd have 2 million of equity here this 2 million of new equity, right?

And just to kind of tie it a little bit with what we did in the first video, if we have a million shares, the book value of the equity is 5 million, so if we say the book value per share is just going to be this number divided by the million shares I have.

But what I want to do in this video is make it a little bit more tangible, to really understand exactly what you're buying when you buy a share of stock.

Our liabilities are still 3 billion.

And going price on those exchanges

Most of it deposited over the last year.

So let's say this company has let me do it in mauve so this company's shares, let's say it has 1 million shares.

And I'm making the number really small just to make the drawing and the math easy

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

If I had to ask you, In 2005 what was the best performing stock market or stock exchange in the world? Would Egypt come to mind?