Debt vs. Equity. Market Capitalization, Asset Value, and Enterprise Value. Created by Sal Khan.
Watch the next lesson:
https://www.khanacademy.org/economics-finance-domain/core-finance/stock-and-bonds/venture-capital-and-capital-markets/v/chapter-7-bankruptcy-liquidation?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets
Missed the previous lesson? Watch here: https://www.khanacademy.org/economics-finance-domain/core-finance/stock-and-bonds/venture-capital-and-capital-markets/v/more-on-ipos?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets
Finance and capital markets on Khan Academy: This is an old set of videos, but if you put up with Sal’s messy handwriting (it has since improved) and spotty sound, there is a lot to be learned here. In particular, this tutorial walks through starting, financing and taking public a company (and even talks about what happens if it has trouble paying its debts).
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Really great, simple, informative video.
These videos changed my life
good content, thanks
Perfectly explained !!
but what if the companies assets fall drastically in value? So if the $150 million had been used to make a rocket that was now obsolete and only worth $50 million. how would that effect market cap? or say the rocket was worth only $1 million and there is the $3 million debt – surely then the company is bankrupt?
great work!!, very clearily explained , so useful!
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How does he put another 1M to Stock Market. Where does it come from?
This is glorious, I been tryin to find out about "strike price premium" for a while now, and I think this has helped. Ever heard of – Genubrey Mispriced Infiltration – (Have a quick look on google cant remember the place now ) ? Ive heard some amazing things about it and my cousin got amazing success with it.
I always get confused how a company having debt can add value to the company?
Khan acedamy plz stop using black backgroud… it makes video bit boring
i want to get some stock money but I don't believe it until I know exactly what's all about you're very good at explaining I just wish I could really get the whole game.. I feel nervous but hoping for beginners luck