ABC:The Purpose of the Stock Market

ABC:The Purpose of the Stock Market
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  • a couple wants to start a business so they take out a loan at the bank 
  • we'd like to take out a loan to start a business.
  • that will be 300,000 dollars. 
  • The couple wants  to expand but doesn't want to use the bank again 
  • I think we should expend our business.
  • I agree but lets use stocks instead of the bank.
  • How much do you think we can make with stocks
  • ABC Furniture 
  • The couple calls in a underwriter to find out the worth of their companies stock
  • I would estimate that your companies stock worth is $13 million. Now how much you will  sell is up to you.
  • the couple decides to sell 40 % of their  company  and keep the other 60%
  • we'd like to sell 40% of our company.
  • ABC Furniture 
  • The couple successfully opens two new stores.
  • ABC Furniture2
  • wow I didn't know that we could be able to open so man more stores 
  • I didn't know stocks were so popular which was a good thing for us 
  • ABC Furniture3
  • Despite giving up total control, the couple now has much more wealth due to the expansion 
  • I'm so glad we deiced to open that store
  • Me too becuase even though its owned by the stock market we made a  lot of money
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