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

And it's something interesting here.

So I think you had more and more people thinking that they were saving when they weren't.

They've never made money.

So really the stock has no value.

Sometimes called the market cap.

Well, what's the market cap?

It's actually horrible.

And that tells you that the book value per share is 4.

I said the price doesn't tell you much.

Because we know that the book value per share is 5.

(Laughter)

So if we believe these numbers, if we believe the books, the book value of the shares is about 3.02 per share.

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

Our liabilities are still 3 billion.

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

What's my worst case scenario?

And this calculation, this multiplication of market price per share times the number of shares this is called the market cap

There was risk.

It turns out we made this pretty easy.

Anyway, fair enough.

Do I have to pay 100?

They've never made money.

So each of those shares is one 500 millionth of this equity.

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

They're saying it's worth 5 million.

So this is interesting.

Here, what multiple are we paying?

And that's interesting.

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.

Stock Chart

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

He's a stockbroker.

Obviously a 6 Price to Earnings of 20 times 2013 earnings isn't as good as a 6 Price to Earnings of 2010, because earnings in the future aren't worth as much as earnings today.

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

And now there's 2.5 billion shares to split this equity.

The Tokyo stock market recorded an unprecedented loss.

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

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)

It is a customary contraction like our

'Company.' It is a customary contraction like our

Price

goodness.

SCOTT Inc.'s stocks are blue chip stocks.

And if you want to look at earnings per share, EPS, is this number divided by the number of shares was 0.35.