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.

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.

I'll do that in yellow.

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.

He's a stockbroker.

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

Another way to think about it is, if the market is paying 12 million per share, what's the market cap of the company?

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

Sometime people just say EPS for this company in 2008 was, and in this case you take 350,000, your total earnings, divided by the total number of shares you have.

goodness.

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

The shareholder's meeting was held.

SCOTT Inc.'s stocks are blue chip stocks.

So the total assets were 5 billion in assets.

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