More on IPOs, Stocks and Bonds, Finance and Capital Markets

Although mainly reviewing previous videos, Sal delves further into the details of IPOs and explores the reasons companies raise equity and others purchase it. As he describes the assets and equity of a business, note that there is an error in his calculations around 2:30 of pre-money and post-money valuation; address this before moving on. Sal reviews investment liquidity and purposes for an IPO, explaining ticker symbols and the trading process. Like the last video, he details the role of investment banks. Learners investigate the reasons people purchase shares in a company, introducing the concepts of dividends and corporate buyouts.