Your Company Is Worth $1 Million. Where's the Money?

Robo's company is "worth a million dollars" – so why didn't a million dollars appear in his bank account? An investor puts $100,000 into the business for 10% ownership after the deal. Assuming equal share rights, that implies a $1,000,000 valuation – but only $100,000 actually changed hands, and that money belongs to the company. Robo's 90% may be worth $900,000 at the deal's price, but turning shares into cash needs a buyer and an actual sale. A price tag is not a bank balance. Simplified, fictional example. Education only, not investment advice. Full video on the channel: "How Can a Company Be Worth $60 Billion?"