Raising Money for a Startup, Stocks and Bonds, Finance and Capital Markets

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