Bailout 6: Getting an equity infusion

[@samuelshtefanio5029]

6:52 " ... when i was getting 30 million a year I heavily believed in the market, but now I'm in denial of the market." Haha Sal that was spicy.

[@dallenchao]

I DID go to MIT, and don't think it was explained as well there. Great work!

[@kleineajw]

You rock! I am a teacher & I really enjoy your delivery style. Keep up the great work!!

[@expchrist]

Khan great job! This is far more rewarding than watching TV. Do you have a playlist explaining how you gained your experience and your insight? Why you started doing you tube videos? Are you hiring? Can I submit my resume to you for a job so that I might learn some more first hand?

[@bcnicholas123]

"Goldman Brothers or Lehman Sachs"

[@olipop84]

yeah, dude, you're the man!

[@pongman]

Thanks professor. If I had you as a teacher I'd have gone to MIT lol.

[@UnitedPebbles]

hey so that new dilution will reflect on the price on the exchange? it is in private hand, right? basically, the company will bankrupt anyway, because it have to pay its liabilities, "right away"? hmmm Newly infused cash in exchange of the "ownership" of the company when itself doesn't even own the shares is mind boggling. It could stand for lawsuit.

[@brco2003]

He doesn't teach at MIT, but he should.

[@brco2003]

Sal, why did the company need to pay of Loans A and B (in the previous video)? Could they not have not paid them off and accrued a bit more interest while still holding on to those solid bonds?

[@ladicius]

@delegate21 were you responding to a question similar to 'how did swf purchase 2b shares when there were only 500m?'...that was my question...

[@wmacorlando]

it's a shame that 10,000 people have seen Bailout 1 and only 853 people have seen bailout 6 so far. This just tells me people aren't as interested in or able to understand this subject as they say they are.

[@UnitedPebbles]

Lehman Bros was the only one that did not get purchase, which is an unfortunate for any major banks or financial institution in the world. Instead, they split it and sell it off, for cheap!! They are one of the underwriters, I think. They hold a significant amount of stocks/ownership of companies on Wall Street, which is not very liquid in such a short amount of time, because they behave like a margin account!!!

[@UnitedPebbles]

When a company listed itself on the exchange, uh it basically exchange its ownership for cash to its underwriters, mostly major banks, which sell it to smaller institutions, which trickle down to smaller investors, like you and I. So who owned the stocks? when most companies on Wall Street are 70-80% owned by investors. How can they dilute that significantly amount without anyone contest?

[@wmacorlando]

the loan was due because corporations often take out loans for a short term like 3 months.

[@Andersxman]

So is an "Equity infusion" what Goldman Sachs did recently to raise $6bn? I haven't been following that closely, but it doesn't seem to me that the shareholders in Goldman got hit by this latest move? If Goldman didn't do an Equity Infusion, then what was it they did?

[@UnitedPebbles]

Instruments and vehicles change with time, B! It takes time, it takes time.

[@mrjaywilliams7729]

We're "Goldman Brothers" or "Lehman Sachs" lol!

[@mark7996]

exactly, and this is whats happening in real life right now...doesn't make sense. they are technically buying way above market value...because co's can't sell it privately.

[@UnitedPebbles]

After the cloud & rain goes away, the sun will shine. You wanted things to shine, right?

[@anhdang400]

It sounds like he is talking about $UAL