We're now moving into East Africa.

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

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

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

Well, what's the market cap?

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 we have some cash, we have 5 million in cash.

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.

Our liabilities are still 3 billion.

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

This is the equity right here.

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.

Well, that is what Wall Street is for... to float stock issues, Abe.

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.

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

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

This is the building.

Instead, since we are the board of the company, we issue another million shares, so we double the share count and we give it to him.

He's a stockbroker.

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

It has been reported that 32 trillion of paper assets were printed by one government alone.

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

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

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.

So essentially what these guys will do, our board of directors will issue these new shares.

Stockbroker.

Stockbroker?