let's say this is a publicly traded company.

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

I'm a geologist, got out of school in '51, and I've been in the industry my entire life.

And what does that mean?

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

And there are different models which allow you to compute the control you get from ownership.

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

And the way you do that mechanically is that you borrow the stock.

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

I'm just buying that share from another guy.

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.

This wouldn't be realistic, normally it would be something in the 100s or 1000s of shares or maybe even more than that.

When you normally buy a stock on an exchange, as the New York Stock Exchange, you're just buying the stock from somebody else.

She has a 10 percent interest in the company.

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

BL Daphne, if I may draw your attention to one thing.

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

So what he does is or he has an idea that says

So I have to make it look, or at least the broker is going to force me to make it look like this guy still owns the share.

Let me see if I can draw that in.

My father holds the major interest in the corporation.

The investment bank at least starting off with all of the shares of the Special Purpose Entity.

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

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

And you could keep rearranging the securities so that none of these guys ever know that their stock is borrowed.

Then, you can buy back the stock

And then, when the stock starts to move up they get scared and they buy it, and it causes the stock to move up even more.

And the reason why they're the sell side is because they're always selling you stuff.

So what are the signs that things are fundamentally changing?

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?

goodness.

SCOTT Inc.'s stocks are blue chip stocks.

Well, what's the market cap?

They've never made money.

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

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

And this is an important thing to realize.

So the angel investor owns one million, not out of two million shares like he used to.

Every man, woman and child on earth has a stake in this.

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

The stock market is very active.

He's a stockbroker.

The book value is 6.00, but the market saying no, no, no, we are willing to pay 12.00 per share for one of those shares.

He's got a top hat.

So how may shares are there?