Bailout 3: Book value vs. market value

What it means when the market value of a stock is different from its book value.

Category:

Education

Tags:

• bailout
• fed
• treasury
• insolvency
• credit
• crunch

[11141983]

I wanna be like this guy!!!!! though I would need a Harvard MBA

[khanacademy]

Trust me, you don't need a Harvard MBA. You'd be surprised how many MBA's don't understand most of this.

[PhilipK100]

I'm learning loads here, I'm defanetly gonna watch the rest tomorrow.

PHILIP

[doublek321]

I thought the market value fluctuated based on future expectations about the company. I guess I'm wrong about this?

[xsultrysongstress79x]

I can't pay for summer classes this session, and instead of just sitting around and feeling bad about it, i feel like i am learning more from you than i would have if i was actually in school. You're making a real difference, and the way you teach is so fresh and forward. You speak without a bunch of jargon, and you're not condescending like many teachers are, so it makes it easier to actually listen to what you have to say. Thank you so much.

[jennygozo]

hey guys can you please help me? i was wondering in the case of CDOs, how does the bank account for the money it gets back from the SPE in its BS? Does it account for it as cash? caus in the video it is stated that the residual CDO is the traunch which was the most risky only. So i was wondering were the amount the CDOs were sold for goes in the BS.

thanks

[ConferenceConnection]

@Toshirozawa

ok ok..i didnt see the dot. =P

thanks :) and sorry for that...

[Toshirozawa]

@foxconcept he writes 0.500B

[foxconcept]

its 12X 500mil = 6B, not 12X500B = 6B 08:39

[hostagelai]

T Y

[walloliveira]

I'm not fluency in english, but you makes me learn more about finance than my finance teacher here in Brazil, congratulation, you're making the difference

[wmanger]

Sal,its interesting,.you help a lot of people,(well of course im one of those) understand the market.