Accounting Measurement

  

Metrics. Like...how much did the coffee mugs with the swear words painted on them cost us? What if we'd sold a million instead of a hundred? There was a union strike last month, and production slowed 10%...how much did that cost us? If we replaced those workers with robots, how much would that change our numbers?

That's the metrical part of Accounting: you measure everything. For more intimate measurements, we suggest doing them privately. Wars have been fought over less.

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Finance: What Happens When your Stock Sp...62 Views

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Finance allah shmoop shmoop what happens when your stock splits

00:07

Well for one thing it's not is embarrassing Is when

00:10

your pants split Trust me thie Answer Mohr pie pieces

00:15

that's What happens when your stock splits That's it well

00:17

here's the pie before the split This pie represents the

00:21

dessert company pastry holic synonymous And if you look carefully

00:25

with a big fat zoom in microscope while you khun

00:29

see ten million slices of this pie that's ten million

00:34

shares currently on the market trading that comprise the value

00:37

of this entire company Well the stock has done great

00:40

It has had a big fat rise in zooming to

00:43

one hundred dollars a share valuing the company at a

00:46

billion dollars How no that's not magic With the stock

00:49

market paying one hundred dollars a share for pastry hollis

00:52

anonymous multiplies that hundred dollars by the ten million shares

00:56

to get the market capitalization or market value of the

01:00

company Yep a cool bill in this case Well the

01:03

company wants to split the stock for four for one

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to make it easier for less wealthy people toe by

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at least one hundred shares And if people buy fewer

01:12

than a hundred shares While there's usually much more commission

01:15

they pay for not buying what's called around lot so

01:18

the company splits the stock for for one and now

01:22

instead of ten million tiny slices they have forty million

01:26

teeny tiny slices and no that's not by magic For

01:30

everyone who had one share before Now they have four

01:33

The stock price should fall on the day of the

01:36

split from one hundred bucks to twenty five bucks a

01:38

share and that's it pastry Hollis anonymous now has forty

01:41

million shares outstanding with wall street paying twenty five bucks

01:45

a share for them and voila the value of the

01:47

company or its market capitalization has not changed it's still

01:52

that same cool bill we started out with on ly

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Now that cool bill is chopped up into smaller pieces

01:59

Wow counting has never made us so hungry for a

02:02

nice piece apply Is this gluten free that maybe tax 00:02:05.7 --> [endTime] free You got any tax free pies

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