Starting A Business

Bill Ackman, CEO of Pershing Square Capital Management, provides an hour-long lesson on finance and investing using the example of a lemonade stand. He explains basic terms associated with a business and investing, such as generating revenue, raising capital, and monetizing investments. Ackman demonstrates how to form a corporation and raise money from outside investors by selling shares of stock. He also discusses borrowing money to keep more of the stock for themselves and understanding a balance sheet to determine a company’s assets, liabilities, and shareholders’ equity. This lesson provides a simple way to understand the basics of a business and how it works.