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

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?

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)

liabilities plus equity.

So 26 minus 23 is equal to 3.

We're now moving into East Africa.

Our liabilities are still 3 billion.

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

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

They are generating the same economics from the operating part of their business.

He lost a lot of money in the stock investment.

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

I use 100 gold pieces.

So 5 million of liabilities.

let's say this is a publicly traded company.

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

What happens in a closed end fund is that all of the investors are essentially

So this is my liabilities.

because they're both on the right hand side.

The structural formula for water is H O H.

I put it in, I don't know, maybe I'm a good investor.

Edit chemical structures and reactions

But it's really a measure of the same thing.

This is the building.

And if anything, this guy's growing a little bit faster because he's got that leverage, that extra juice from the financials, from the capital structure he's got.

He's a stockbroker.

I owe these people that money is 700 and my equity is 300.

Let's think a little bit about leverage.

And then the equity is, essentially we would look at this formula.

He made a killing by investing in the stock market.

Other current assets.

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

So the shareholders' equity, or you could almost say the book value of the equity of the company, is 5 million. 5 million equity.

It is a customary contraction like our

'Company.' It is a customary contraction like our

In the next video, I'll show you that the reason why this is kind of breaking down is because a price to earnings ratio does break down to a certain degree when you start comparing things with different capital structures.

goodness.

You have 3 billion of assets, 4 billion of liabilities, this is actually minus 1 billion of equity.

SCOTT Inc.'s stocks are blue chip stocks.

Stockbroker.

Stockbroker?

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

And you get a 6 billion market cap.

Stock investments do not always yield profit.

And I'm going to earn, or I'm going to grow just because