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@BabakHamedani3 жыл бұрын
Will explained, thank you
@cannongregory63113 жыл бұрын
@Kevin Ahmir instablaster :)
@DavidCBarnett Жыл бұрын
@Bernard Njathi calls can be arranged at www.callDavidBarnett.com
@mansamusa36273 жыл бұрын
Id love to have this guy as my next door neighbor. I'd be talking to him everyday😂
@DavidCBarnett3 жыл бұрын
My neighbour’s name is Brent. I do speak to him most days. Currently, there are no homes for sale on my street, but I’ll let you know.
@Jay_Bless Жыл бұрын
Thank you Lord for the internet. Am forever grateful. 🙌😭🙏
@DavidCBarnett Жыл бұрын
I'm a big fan of the internet too.
@Jay_Bless Жыл бұрын
@@DavidCBarnett My business grew and I wanted to register it as a company limited by shares. I literally had no starting point. You have no idea how much enlightenment I got from this video. Keep up the great work sir.
@jwbnscacpt2 жыл бұрын
My brother and I have been running an LLC for a little over 11 years now, and we’re ready to kick it up a notch and start expanding by offering shares to some of our clientele. This information is very helpful. I will study all your work on the subject. Thanks for the info!
@DavidCBarnett2 жыл бұрын
That is awesome! You may also check www.investlocalbook.com/ to learn more.
@nemnemfrooti23935 жыл бұрын
David....I really like how simply you brake the information, so every one can understand it. U R the King. keep it up
@DavidCBarnett5 жыл бұрын
Thanks for the kind words Nemnem. I'm happy to help.
@RealEstateRadioTV-SA5 жыл бұрын
Yes, He is King David
@ilovejesus93034 жыл бұрын
I swear he explained it so nice but still can't understand. I think I will listen to this many times. I want to buy shares a friend is inviting me but I just don't get it how it will profit me
@magix10567 жыл бұрын
Apart from all the other channels, this has the best explaination!
@DavidCBarnett7 жыл бұрын
Thanks for the kind words! Be sure to sign up for my email list at www.DavidCBarnett.com if you don't want to miss any new videos.
@23423rwefsdfc5 жыл бұрын
Sir, at 5 :24 you answered my question that i have been searching since all day long on internet. Thanks !
@DavidCBarnett5 жыл бұрын
Hey Rahul, I'm happy to help. Cheers.
@DavidCBarnett4 жыл бұрын
gamers no1 sure. Whatever you want.
@SkylineWebTech1233 жыл бұрын
@@DavidCBarnett 2 questions What's the value of the share when you first buy it? And is dividends in the shares per month? Or per year?
@amandamartinez1732 Жыл бұрын
I can't listen to you all day! You are an amazing teacher. Thanks for this video! 😊
@DavidCBarnett Жыл бұрын
I'm guessing you mean 'Can?'
@DavidCBarnett Жыл бұрын
Wow, thank you!
@mauricio.montoya4 жыл бұрын
It's 2020 and still it's the nicest explanation around! Thank you David
@DavidCBarnett4 жыл бұрын
Thanks Mauricio!
@amandamartinez1732 Жыл бұрын
It's 2023 and STILL the nicest explanation around! Lol
@spilkcore-82055 жыл бұрын
Excellent explanation. This precisely answered my question in a very clear way. Please make more videos!
@DavidCBarnett5 жыл бұрын
Spilcore. Thank you. To be sure and never miss anything I put out, just subscribe to the list at www.DavidCBarnettList.com Cheers.
@cgdata92133 жыл бұрын
Amazing info - something that you don't get taught in school. Thank you, Sir!
@DavidCBarnett3 жыл бұрын
Glad it was helpful Cg!
@kevinallen49773 жыл бұрын
Hi David, thank you for the clarification. Subscribed! But I have a couple of questions: 1) where does preferred stock 2) common stock 3) stock options for employees come in How does this relate with the current video?
@DavidCBarnett3 жыл бұрын
Preferred shares are a form of financing. When we talk about 'company shares' we're almost always referring to common stock. also called 'voting shares.' Options give someone the right to buy something at a pre-determined price. This would be an incentive to allow people to buy in. The more under-market the option price, the larger the incentive.
@motivatedbrands3 жыл бұрын
Finally someone willing to share knowledge and not try to make it complicated in order to make people feel like they can not do it themselves so they get retained. It makes a business 'more' likely to retain you!
@DavidCBarnett3 жыл бұрын
Doh! You figured out my super-secret business strategy!!! ;)
@WealthyArmy2 жыл бұрын
The most decent explanation of the subject ever
@DavidCBarnett2 жыл бұрын
Geez! You’re making me blush Army.
@sunilkumar-jr8xq4 жыл бұрын
the way you explained is simply amazing. hope you keep sharing your knowledge to negotiate misconceptions about biz.
@DavidCBarnett4 жыл бұрын
Thanks Sunil. I do have a lot of videos. Please give me a hand by liking and sharing when you enjoy them. Cheers.
@REALIGNSPHARMACEUTICALSCOLTD Жыл бұрын
I appreciate they way you explained the process. Best wishes for you and your team.
@DavidCBarnett Жыл бұрын
Much appreciated!
@jsueaud Жыл бұрын
Holy smokes. This video is fire 🔥🔥🔥🔥😮💨😮💨😮💨😮💨😂😂😂🙌🙌🙌 thank you! Great info!
@DavidCBarnett Жыл бұрын
Thanks J!
@davetheman26153 жыл бұрын
David, thanks a lot, i've just watched a video on start equity share, and was confused on issuing more shares rather than splitting the existing shares, so this has really helped,
@DavidCBarnett3 жыл бұрын
Glad it was helpful! I appreciate the comment.
@veganinvesting1111 Жыл бұрын
Great video! Subscribed
@DavidCBarnett Жыл бұрын
Thanks Vegan
@theinnercircle90762 жыл бұрын
Hey David....Thanks for the Video. Its very Clear
@DavidCBarnett2 жыл бұрын
Glad it was helpful!
@kingdrew50832 жыл бұрын
thanks alot i'm learning so much about stocks i love it!
@DavidCBarnett2 жыл бұрын
Great to hear!
@irlanderislin37447 жыл бұрын
Thank you for the video. It was very educational and I actually have a better understanding of how shares are diluted.
@DavidCBarnett7 жыл бұрын
Awesome. If you ever have a specific case that you want to discuss you can always reach me at www.clarity.fm/davidbarnett
@markjaeger51986 жыл бұрын
Thanks David. Our current $350K of debt = $4,000/Mo. in debt service. This is the monthly amount that could be put to work for the business instead. Local brewery that is breaking even now . These investors would be helping out, and betting on blue skies more than an immediate big return.
@DavidCBarnett6 жыл бұрын
Well, If I was to invest $350k into a local microbrewery I'd be looking for about $105K/year in returns for the risk and then I'd be looking to leverage the position by adding debt... which you already have. Unless you can find a way to sell shares to beer lovers who don't look for any return on investment then you should be looking for other solutions to your problems. Like the fact that you invested $350K plus your own time and money and the business is just breaking even. The problem is not the capital structure. For example, you may need more sales and some amount of money to do a marketing campaign. In this case, you could find an investor to put in a much smaller amount of money to grow the sales and allow you to make more. The debt you have will work to magnify the return on equity. In almost every case, debt is cheaper than equity. Many businesses would be envious of the fact that you've been able to borrow for this business, especially since it's a startup.
@adv.ai4all Жыл бұрын
Super useful Info!
@DavidCBarnett Жыл бұрын
Thanks
@currieossitee51853 жыл бұрын
that last part was funny!
@DavidCBarnett3 жыл бұрын
Thanks Currie.
@tijanapodvinski36806 жыл бұрын
Hey David, great explanation, can you explain how the options affect dilution as well as preference stocks?Thanks
@DavidCBarnett6 жыл бұрын
Hey, that's a great topic. I'll add it to the list. Subscribe to the channel or my e-mail list at www.DavidCBarnett.com so you're sure not to miss it when it comes out.
@CoreyChambersLA2 жыл бұрын
You can transfer shares by buying and selling shares.
@DavidCBarnett2 жыл бұрын
True.
@edanthonysomera14912 жыл бұрын
That clears up the question I had in my mind. Thank you David. That was very helpful.
@DavidCBarnett2 жыл бұрын
Glad it was helpful!
@andrew-isac3 жыл бұрын
thank u for direct ecplanation and time saving and effort
@DavidCBarnett2 жыл бұрын
Thanks Andrew
@downloadingmoney48245 жыл бұрын
wow this really amazing and clear to understand. thanks alot.
@DavidCBarnett5 жыл бұрын
I’m glad you found it clear. It’s always my mission.
@erikthered89892 жыл бұрын
VERY helpful. Thanks for explaining
@DavidCBarnett2 жыл бұрын
You're welcome!
@TomorrowGaming99 Жыл бұрын
Very helpful thanks
@DavidCBarnett Жыл бұрын
Glad it helped
@billsaber2 жыл бұрын
Great video, thank your for your knowledge
@DavidCBarnett2 жыл бұрын
Glad it was helpful!
@adamsofian33582 жыл бұрын
this guy is awesome
@DavidCBarnett2 жыл бұрын
You should see me in my superhero outfit.
@SCARfinancial4 жыл бұрын
So simple and perfectly explained
@DavidCBarnett4 жыл бұрын
Glad you liked it. Thanks for the kind words.
@TrEo23223 жыл бұрын
i love buy backs.
@DavidCBarnett3 жыл бұрын
If you're into capital gains, it can be awesome.
@TrEo23223 жыл бұрын
@@DavidCBarnett you should teach about having a private company and do buys back with other private company’s to raise value. also teach becoming an accredited investor.
@iamerickshirima2 жыл бұрын
Thank you David Barnett
@DavidCBarnett2 жыл бұрын
No problem Erick
@jessesoto61503 жыл бұрын
Thank you, David! Very straight forward 👍
@DavidCBarnett3 жыл бұрын
Thanks Jesse.
@himanshumendiratta854 жыл бұрын
Very good explanation .. keeping it simple .. thanks
@DavidCBarnett4 жыл бұрын
Thanks Himanshu
@TheGolfer293 жыл бұрын
What a fantastic way to explain it! I’m in this exact situation and this has helped me greatly!
@DavidCBarnett3 жыл бұрын
Glad it was helpful! Don't forget to hit 'like' and subscribe to the channel.
@stevannox75195 жыл бұрын
Wow this is my first time, this is new for me. Thank you
@DavidCBarnett5 жыл бұрын
If you’re interested in business and deals, be sure to subscribe to my email newsletter at www.DavidCBarnettList.com
@emmanuellegacy7363 Жыл бұрын
Thank you so much sir
@DavidCBarnett Жыл бұрын
Most welcome
@RealEstateRadioTV-SA5 жыл бұрын
David thank you for Killing Goliath once again, so that the children of God can rejoice in His name and power once again. You have nailed this tutorial. .thank you thank you and many more thanks. Regards Gaven Malope South Africa / Sandton
@DavidCBarnett5 жыл бұрын
Yup, duck and cover if you see me swinging my sling.
@RealEstateRadioTV-SA5 жыл бұрын
Thank you@@DavidCBarnett , now i got some of your business anointing let me go kill my Goliath. David , do you know if there is a limit to the authorization of preferred shares . or the authorization limit is for common shares ONLY ?
@DavidCBarnett5 жыл бұрын
I'm not sure where you are and what the rules are in your jurisdiction. This would be something regulated by your state or national government. Where I live, corporations can issue whatever number of shares are stated in their incorporation documents, or even 'unlimited' if this is what the charter says. This would go for common, preferred, etc
@RealEstateRadioTV-SA5 жыл бұрын
@@DavidCBarnett , You are the Best Indeed . I believe this is a general rule , i needed a sounding board. i am waiting for my commercial attorney's to draft or amend my incorporation documents . so in the meantime i was doing my research to familiarize myself with the language so i can have a meaningful meeting and ask relevant questions to ensure the success of my LLC ( in South Africa we call them PTY) . Thank you once again for thanking the time and writing back to me.
@Kawaiigirl4.02 жыл бұрын
How are you doing the math on the calculator? I have seen many finance videos and no one has ever told the viewers how exactly they are doing the calculations.
@filmaker2564 жыл бұрын
The secuartary of state will authorize enough to your Corp so you don't have to keep coming back to file. Now going public , now that can be difficult
@DavidCBarnett4 жыл бұрын
Going public is a whole different thing. agreed.
@filmaker2564 жыл бұрын
@@DavidCBarnett and very political! Also your stock has to usually maintain a price above a dollar.
@VICT0RLAZL03 жыл бұрын
Very well explained Thank you
@DavidCBarnett3 жыл бұрын
Glad it was helpful!
@FootFC_Editz Жыл бұрын
Since im going to start a small construction company, how many shares you recommend i have and what should be the par value of each share?
@AvtarDhillon3 жыл бұрын
Good information about issuing shares
@DavidCBarnett3 жыл бұрын
Thanks for liking Avtar.
@AvtarDhillon3 жыл бұрын
@@DavidCBarnett I have some questions about this topic and on Plc companies where may I ask you this question sir ? Thank you
@DavidCBarnett3 жыл бұрын
I can always be reached at www.clarity.fm/davidbarnett please be sure to indicate your location when requesting a call
@AvtarDhillon3 жыл бұрын
@@DavidCBarnett ok thank you I am based in the uk at the moment but my gold mine project will be in the DRC
@prorigami24442 жыл бұрын
This helped me a lot to understand shares. Thank You!
@DavidCBarnett2 жыл бұрын
Glad it was helpful!
@prorigami24442 жыл бұрын
@@DavidCBarnett Can a company issue more shares at a certain price and buy another company in exchange for those shares?
@doneallionel44722 жыл бұрын
I’m just learning about investing and getting into business, but I don’t have a company and I don’t have much money, how can I buy share into the company I’m working for right now?
@DavidCBarnett2 жыл бұрын
If it's a publicly traded company, contact a stock broker. If it's private, then the owners would have to sell you some shares. It's not very common that they would do this unless they're running an employee stock program of some kind.
@wolfganggermain71753 жыл бұрын
Thanks sir.
@DavidCBarnett3 жыл бұрын
Most welcome
@talebbagazi14353 жыл бұрын
Thank you so much for teaching this point.
@DavidCBarnett3 жыл бұрын
Glad it was helpful Taleb!
@akshatsharma42162 жыл бұрын
That was helpful 👍👍👍 thanks!
@DavidCBarnett2 жыл бұрын
Thanks Akshat.
@jimflask11645 жыл бұрын
What if you owned a corporation and you never knew until now. What would you do? How would you know what it's worth, what assets it has, or where did your back pay go?
@DavidCBarnett5 жыл бұрын
Well, owners control the board and are the directors and they give direction to management. If you own a company outside your knowledge, then either a parent was trying to set up something for you or maybe it’s some kind of fraud. I’d start by looking at the incorporation docs and see who registered it to begin with.
@jimflask11645 жыл бұрын
@@DavidCBarnett Yeah, I presume parents set it up. Shortly after that I presume it was abandoned, seized, or incorporated into some kind of trust. I found some CUSIP number that pointed towards a significant amount of assets, like an unbelievable amount. I don't know if it's mine or meant to be mine, I'm almost 40 and no one has contacted me for anything.
@anshulb61284 жыл бұрын
Hi David, If the company keeps 100 shares and all the three shareholders have 33.33% shares , why should the shareholders increase the number of shares? According to the calculation the profit is anyways divided equally ? How does it make a difference ?
@DavidCBarnett4 жыл бұрын
If there were three shareholders and you never wanted to add any more or never wanted to make any of the changes suggested in this video, then why not just have three shares? I have a client with this kind of structure. Three shareholders... three shares. This is the point of the video. The number of shares is completely arbitrary and is driven by the plans for the business.
@WealthyArmy2 жыл бұрын
@@DavidCBarnett so the number of shares is more or less just to make accounting easy.
@ThatLegendRicoKing5 жыл бұрын
Great information. Thanks David !
@DavidCBarnett5 жыл бұрын
Thanks for watching. Be sure not to miss anything new by joining the list at www.DavidCBarnettList.com
@Ludawig5 жыл бұрын
Thanks for your content David
@DavidCBarnett5 жыл бұрын
No problem Ludwig. Good luck in your business pursuits.
@misskairagreamchasser15923 жыл бұрын
I enjoyed it so much
@DavidCBarnett3 жыл бұрын
Thanks
@suzalkumar8234 жыл бұрын
Very useful information sir, thanks.
@DavidCBarnett4 жыл бұрын
Thanks Suzal
@cvicapitalgroup65206 жыл бұрын
Great Video David
@DavidCBarnett6 жыл бұрын
Thanks so much.
@misskairagreamchasser15923 жыл бұрын
Thank you so much I need more information please
@DavidCBarnett3 жыл бұрын
I'm available for people to chat at www.Clarity.fm/davidbarnett if you want to go over your situation.
@nitsdas58694 жыл бұрын
Teaching & Explanation level is 100%. 👍 sir, can u teach physics and maths??
@DavidCBarnett4 жыл бұрын
Hi there, thanks for your kind words. I'm sure there are a lot of great teachers out there teaching those topics. Maybe I'll look again in a few years as a retirement project.
@nitsdas58694 жыл бұрын
@@DavidCBarnett keep it up sir.. u r doing great.
@taiwoadeoti82034 жыл бұрын
wow! uve just solved my agelong conundrum
@DavidCBarnett4 жыл бұрын
Awesome. Glad to help.
@Kevinwatches2 жыл бұрын
This may be stupid or I might not have finished yet lol Say 1 person creates a business issues 100 shares. Later 2 others decide to join in. All are blue collar workers cleaning sidewalks but the first person brung most of the capital. What's the best way to determine the amount of shares they get? Of course if person 1 invested 100$, person 2 invested 50$, but person 3 didn't bring capital but brought knowledge. Would we just issue and divide shares by FMV of what the bylaws think the knowledge brings?
@godbeerus14575 жыл бұрын
Not understood
@firstreviewer8966 Жыл бұрын
You are very helpful, and also very good at this. Excellent Video! FR
@DavidCBarnett Жыл бұрын
Thanks for the great review!
@omarharms14933 жыл бұрын
Great video. Thank you. 1 question though........when adding more shares for a third party to join. Do the founding shareholders need to pay anything? or is it just a agreement on paper stating who owns how much?
@DavidCBarnett3 жыл бұрын
There is a record called a share register which keeps track of who owns how many shares. If you add a new investor and sell them newly created shares, you just add this entry to the register.
@godsdsipl3 жыл бұрын
I am in the startup phase of a new c corp. In doing so we started with 1,000,000 shares. I want to make sure that I as the founder always have controlling interest so that a board of directors cannot in time come in and vote me out such as what happened with the founder of Uber. I read how they board of directors tried to do the same with the founder of Facebook but was unable to do so because he owned controlling interest. How do I divide my shares so that I always have controlling interest along with so much preferred stock and so much common stock? Right now, I hold 70% of the preferred stock, I do have a cofounder who holds 25% and another who hold 5%. We would like to add common stock to our portfolio.
@DavidCBarnett3 жыл бұрын
You need to give yourself more shares at the same time as you create new ones for new investors. Watch my video about dilution here: kzfaq.info/get/bejne/fNqfmruKvamnYac.html You may also want to investigate different classes of voting shares like the owners of Magna International use. just google that and you'll find articles.
@ayakaterashi19334 жыл бұрын
This was GREAT. Thank you
@DavidCBarnett4 жыл бұрын
Thanks Ayaka
@hovnanghukasyan52546 жыл бұрын
Thank you
@DavidCBarnett6 жыл бұрын
You're welcome.. go to www.DavidCBarnett.com and join my mailing list to get new videos like this one each week. -dave
@Kevinwatches2 жыл бұрын
Lets say theres 4 people and they own an apartment building with 4,000 in revenue. Would this be paid as a salary, share price increase, or?🤔🤔
@Quizzone25 Жыл бұрын
Very helpful, Thanks Mr.David. Say for example after established a service provider company I needed new shareholders to invest to expand the company. It is possible to increase the number shares from 100 to 1000000 if the initial investment was say $10000. Also who has the right to increase or decrease the number of shares if I sell 700000 shares. After your reply I will appreciate if you share links of guidelines or any other useful references. Thanks
@DavidCBarnett Жыл бұрын
The board of directors has to approve the issuance of new shares. When people invest, they will likely want to restrict your ability to do this in order not to be diluted in their ownership position. I don't know where you're located so you'll have to find your own info as this stuff can change from jurisdiction to jurisdiction. An experienced business attorney can help you locally.
@headlibrarian1996 Жыл бұрын
If you never intend to bring in third-party investors millions of shares seem pointless. Husband and wife 50/50? Two shares. Single owner? One share. Make it simple.
@DavidCBarnett11 ай бұрын
Yes, you need to know what your plan is.
@melordinvestments10762 жыл бұрын
Hello Sir Barnett. I have a question/observation...basically we would just make a resolution to create these share changes whatever they are right?...is it important that we have these resolutions and proof of the buys and sells and splits recorded in the company's minute book??
@DavidCBarnett2 жыл бұрын
Absolutely. That's what the minute book is for. Make sure you know the local rules about corporation governance to be sure you are compliant.
@klaaskabini87276 жыл бұрын
Thanks, this cleared my confusion completely.
@DavidCBarnett6 жыл бұрын
Glad to be of help. Don't forget to go to www.DavidCBarnett.com and sign up for my email list so you don't miss any new videos.
@BabakHamedani3 жыл бұрын
When the new shares are sold the previous stock holders should even be happy for the new shares creation, right?!! Coz usually they have invested in at a lower valuation so afterwards their sticks are worth more, am I on the right track? At the same time when new currency is issues by central or non Central Banks the reverse happens and prices inflate. PS I always think inflation should be called deflation because we should be referring to the currency which is losing air, hence deflates.
@DavidCBarnett3 жыл бұрын
Well, we're talking about small businesses here so what you describe may not always happen. If the business has been losing money, new investors might get in at a lower price. There are also circumstances where creditors can't be paid and accept to have their debts turned into shares. Small business shares aren't subject to the same price actions as publicly-traded stocks like you describe with monetary inflation because there is often no market for these securities.
@BabakHamedani3 жыл бұрын
@@DavidCBarnett That's right, I didn't consider a stock buy in at a time when business isn't growing. Very true. They can be seeking money when things aren't so great, but still, the sale of the newly created stocks should bring in more cash to the previous owners: so even though the most evaluation may be lower than the last and previous investors lose in generalv but they would gain in comparison wouldn't they?? Compared with if no nearly socks are created. PS. I missed a good point though that you mention now. 👍👌
@davidbasset75575 жыл бұрын
7:47 I don't understand this part. Why can't the parents/kids start a couple of new companies that acquire they're parents' old company? Isn't that similar to a M&A deal? Company A is a bicycle shop Company B (new company) is a tire shop Company C (new company) is a gas station Company B and C could make a deal to acquire company A right?
@DavidCBarnett5 жыл бұрын
Hi, The corporation in question is involved with long-term contracts with customers. If they created new companies, then they would have to re-qualify with their customers and insurance companies. The example was from an appraisal practice. If it were something like a tire shop then yes, they could just do an asset transfer to a new company, but in this case the entity and its contracts was the thing of value.
@davidbasset75575 жыл бұрын
@@DavidCBarnett I see, thanks for the response. I've been binge watching your channel for a few days now, it's eye opening. I wish I was informed on these matters while in my university business school.
@DavidCBarnett5 жыл бұрын
Learn even more by taking the online course at www.BusinessBuyerAdvantage.com Cheers.
@rakeshpk49914 жыл бұрын
Thanks for explaining.
@DavidCBarnett4 жыл бұрын
Thanks Rakesh
@vharry8222 жыл бұрын
Great video! one question though. why are we increasing the number of shares from 100 shares to 50 shares when John decides to drop out. If the company(Sally) buys John shares, why won't the company shares remain as 100 shares with Sally owning 100%?
@DavidCBarnett2 жыл бұрын
The company and its owners are separate people. If a company buys back its own stock, the shares are 'torn up' leaving the outstanding shares as the only ones left.
@sarahrussell24473 жыл бұрын
Question… do these people who buy the shares have to go on the mortgage? Looking to buy atm and another person wants to become a share holder and put down the deposit. How would this work please?
@DavidCBarnett3 жыл бұрын
How the shareholders relate to loan guarantees is based on the bank's policy. And usually it only matters at the point the loan is made. So, answer is... it depends.
@twokind78015 жыл бұрын
Thanks David
@DavidCBarnett5 жыл бұрын
My pleasure Tony
@bobdeni2446 жыл бұрын
Look. Brain stopped working... Lol! It was also a bit scary :P
@herockhernandez27946 жыл бұрын
Media Matters LMAO
@bobdeni2446 жыл бұрын
Herock Hernandez, Lol! I thought something happened to him... Ha ha
@shipbase296 жыл бұрын
haha all good man. Great recovery. Excellent video. Thank you for posting this.
@danb.31902 жыл бұрын
How does this work if you want to incorporate different types of shares (some with and some without voting rights)?
@DavidCBarnett2 жыл бұрын
It just depends on what the investors will accept. This stuff is totally open to creativity, as long as the different parties agree.
@SomenathChakraborty2 жыл бұрын
Why you keep the price of shared fixed? It is oversimplified and sometimes do not get the correct value change as share price is always dynamic in nature.
@DavidCBarnett2 жыл бұрын
The video demonstrates the issuance and cancellations of shares for admitting and removing shareholders. The value of the shares is addressed in other videos.
@SomenathChakraborty2 жыл бұрын
@@DavidCBarnett Great, please make some advance real scenario analysis by which people really get great help rather than the simple concept. Overall, I appreciate your videos and subscribe your channel, like it too.
@sebasrtrd4 жыл бұрын
Can you as a business owner give yourself extra shares so that the investors have less percentage?
@sebasrtrd4 жыл бұрын
Maybe a dumb question but am just wondering
@DavidCBarnett4 жыл бұрын
The board of directors can do this. Good investors usually want seats on the board and an agreement that would let them control or decide if they wanted to agree to be diluted. See this video: kzfaq.info/get/bejne/fNqfmruKvamnYac.html
@eye-spotcontrolroom53192 жыл бұрын
from 1,075,000 how do you find Sarah's share 6%? Sally and John 47%. I'm lost there
@lalo198515 жыл бұрын
What about the following scenario: my pops started a business as a sole proprietor way back in 2001. In 2016 he Incorporated the business and issued the then-current value of the business's assets as outstanding shares in a 5-way split. He took kept 30%, my mom 21, my brother 20, my sister 9, and I got the remaining 20. None of us put any money in, so we were gifted these shares. Now I'm interested in returning those my shares to them, so I can start purchasing my own with my money. What would be the best way to go about this? Thanks in advance.
@DavidCBarnett5 жыл бұрын
Hmm, you got shares for nothing and now you want to give them back so you can buy some by paying for them? Not sure I understand what you're trying to do or what your goal is. Maybe you should book a call and I can help you after asking a few questions. www.Clarity.fm/davidbarnett is where you can book a time.. Cheers and thanks for watching.
@David-mr9cm4 жыл бұрын
Thank you David for your video on this. I had one question if you don't mind. Why even bother with shares, and not just deal with percent ownership? So when "Sarah" for example wants to buy into the company, the company adds her 75,000 shares to the total share bank, giving her 6%. My question is - why can't Sarah just offer the company money for 6%? Why can't she just tell Sally and John that she will give them x amount of dollars for 6% of the company. What is the point of issuing shares as a whole? Why is there a word for it, isn't it just equity?
@DavidCBarnett4 жыл бұрын
I work really hard to have small business people not think in terms of percentages. It actually causes blocks in how you think about the business and capital structure mentally. Nobody talks about their percentage ownership of Coca-Cola, for example. It's because the shares outstanding are always changing as they issue equity or do buybacks. In your question above, 'Why can't she just pay x for 6%?' That works fine if she's buying their equity and giving the money to the other owners. But what if the idea is that the money needs to go into the company? If she put her money into the company for 6 new percentage points of ownership, then now the company has 106% of owners interest. Which is actually fine. Watch the video again. Cheers.
@David-mr9cm4 жыл бұрын
@@DavidCBarnett Thank you for your explanataion
@atefehghasemzadeh9800 Жыл бұрын
How to do paperwork of transferring 50 shares of 100 of my corporation to my spouse ? Can I do it online ?
@DavidCBarnett Жыл бұрын
It depends on where you are but usually is just done with the minute book and share register. You may have to change something with the government if you're making him a director. My best advice to you is to seek legal counsel locally. This transaction may be scrutinized long into the future for tax or family law issues that you can't necessarily foresee today.
@kristiankieffer92844 жыл бұрын
Great video, very comprehensive
@DavidCBarnett4 жыл бұрын
Glad it was helpful!
@lovelyboy9905 жыл бұрын
Hello, Many thanks for your video. Can you please explain how to valuate new startup business idea? And how to calculate or valuate the sweat equity for managers who will contribute with know how for example? Last question, if the new company established by one owner and he got a lettet of intent to sign a service contract with a client with total amount 50K$ for 18 months, and before signing the contract he wanted to sell a part of the company to get some cash to finance the company and increase the works to meet the contract obligations, how should he calculate the percentage and value of the shares that he should sell? Thank you in advance :) Good luck
@DavidCBarnett5 жыл бұрын
Wow, those are some pretty specific questions. I've done a video before on pre-revenue start-ups kzfaq.info/get/bejne/btWKetNiytDTZnk.html Your sweat equity question and the questions about selling part of the business would need some discussion so that I'm clear on what is going on. I recommend a call. Schedule it at www.clarity.fm/davidbarnett
@samitkumarmandal13185 жыл бұрын
Can you please explain me a Real Estate company's shares and how investors get profits mean how much they wanna get and can get
@DavidCBarnett5 жыл бұрын
hmmm, there are a lot of pieces missing for me to respond to this. If you want to talk to me and use a specific example, I'd recommend a call. You can arrange it at www.clarity.fm/davidbarnett
@dr.rasheedhadidi2663 жыл бұрын
I have a new C cor in Colorado, and I need to list it to Stock market and sell the shares, so what you suggest?
@DavidCBarnett3 жыл бұрын
I recommend you speak to a securities attorney. I know these guys in Colorado... www.doidacrow.com/
@mishackmadubandlela95222 жыл бұрын
So, what if when the company was registered at an Intellectual property commission, it was given either 100 or 1000 shares? Does that mean it can't issue out more than that 100 shares‽
@DavidCBarnett2 жыл бұрын
Depends on how it was registered and the rules in the jurisdiction. In some places, you have to specify the number of shares the company can issue, in other places you can simply say 'an unlimited number of common shares' or list out the classes of shares. There is usually a method to adjust it after with some other kind of filing. Best to talk to an attorney in your jurisdiction who does corporate affairs.
@mishackmadubandlela95222 жыл бұрын
@@DavidCBarnett so, which kind of shares do the owners of the company have... Common or preferred‽
@FIEEN4 жыл бұрын
Hi I need to clarify one thing if you could help. I own 100% of my corporation share. Now if I wanna deposit money to my corporation bank account to purchase assets or investment purposes. Do I have to buy shares against those money that I am going to give my corporation? Or I just simply can deposit money in corporate account ?
@DavidCBarnett4 жыл бұрын
You can put money into your corp by buying shares (adding capital) or by lending it money. Each has it's own tax advantages/issues in different countries. You need to run your plan by a local accountant. Cheers.
@rebivri76792 жыл бұрын
Thanks for the great video. Just about to start a new tech company that will require several rounds of funding downstream. Is there any advantage to starting with e.g. 1,000,000 shares instead of 100, thereby avoiding share splits? Also, does the number of initially issued shares have any bearing on Capital Gains Tax?
@DavidCBarnett2 жыл бұрын
Hi, If you know you'll be issuing lots of shares, then make sure the company can issue an unlimited number. Capital gains are determined by the difference between the price a share is purchased at and the price you sell it at. Not how many are outstanding. As you add rounds of funding, the investors are increasingly going to have a say in how any new shares are created or sold. My advice is to begin with simplicity. If you put in money and time, maybe value the shares at $1 each and issue yourself enough to cover your investments. As soon as you bring investors onto the scene, the value, number, control etc will all start to change subject to your negotiations.
@theAffiliateProgram_TAP Жыл бұрын
I need help registering my company and making the shares seem appealing etc and hold a serious value
@theAffiliateProgram_TAP Жыл бұрын
Ensuring I never have the option for ppl to take enough % to fuck me over u know
@theAffiliateProgram_TAP Жыл бұрын
Like I see u can group you set rules in various classes and amounts etc
@theAffiliateProgram_TAP Жыл бұрын
Looking into these issues has lead me to you. And I hope I can learn the info from the video. Either way I will learn more about what people think. So win win
@theAffiliateProgram_TAP Жыл бұрын
Id even welcome a partnership for the right advise
@theAffiliateProgram_TAP Жыл бұрын
The sooner someone can help me the better
@e-learninghub20244 жыл бұрын
thank u so much
@DavidCBarnett4 жыл бұрын
Happy to help Louie
@andrebritz7729 Жыл бұрын
David, how do existing shareholders buyout an exiting shareholder?
@DavidCBarnett Жыл бұрын
Well, you either have a mechanism for that in your sharelholder's agreement or you negotiate it. For example, you could offer to buy the shares for a certain amount but maybe also get financing from the seller so you pay over time. Also, the exiting shareholder could sell the shares back to the company for cancellation. This would grow the % ownership of the remaining owners. There are taxation pros/cons to a lot of these options so you'll need advice from a local CPA.