Price and Market Capitalization, Stocks and Bonds, Finance and Capital Markets

As Sal introduces a series of videos on investing, he gives scholars an overview of stock investments and asset valuation. Using two hypothetical stock prices, he poses the question of the relative price per share. What is expensive and what is cheap? Sal explains the meaning of shares and the basic formula for calculating market capitalization to determine their value. He explains the difference between the market and book value of assets and makes a case for buying penny stocks.