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Sal's hypothetical company is selling socks online, and he must write a business plan. He discusses the basics of a start-up and assets development in a new corporation. Learners see through the case study how shareholders divide ownership, the formula to calculate assets, and the meaning of equity. Sal explains the venture capital world, focusing on angel investors and pre/post-money valuation. Through this example he is able to demonstrate a stock dilution and explains the logic behind this phenomenon.
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BY-NC-SA: 3.0