yego.me
💡 Stop wasting time. Read Youtube instead of watch. Download Chrome Extension

Stock are not backed by the company. Simple Logic


2m read
·Nov 3, 2024

Busted open, our stock went down to six. It went from 113 to six in less than a year. That whole period is very interesting because the stock is not the company, and the company is not the stock. Stocks are not backed by the company; that is why investors don't know how much their stocks are backed by.

If something is backed, it means you're going to get a definitive amount of money back for whatever you're holding, or there's some kind of accessible collateral. So if Google is trading for two thousand dollars, and the assets on their balance sheet amount to something like a thousand dollars a share, it would be fair for you to assume that Google stocks are backed by a thousand dollars.

The problem is, that's not how it works. If you look at their SEC filings, there isn't a single public company that says they will back their stocks by some defined price. So in practice, they don't have to give you anything.

Now, hypothetically speaking, stocks are backed in the sense that if Google goes out of business, liquidates, pays back their debts, and insiders, whatever's left over will go to the shareholders. The problem is, when the hell is that going to happen? And how much is going to be left over in this hypothetical liquidation?

The potential for a future liquidation or buyout are considered unfalsifiable ideas. No one can show to be right or wrong. It is pseudoscience nonsense that cannot be used in a logical debate. Hypothetically speaking, anything can happen, but you can't use a hypothetical idea to debate the observable fact that if Google crashes tomorrow, as per their SEC filings, they have no definitive obligation to pay their shareholders anything for the stocks they are holding.

More Articles

View All
Shaving Foam | Ingredients With George Zaidan (Episode 3)
[Applause] What’s in here? What’s it do? And can I make it from scratch? It’s a inside ingredients. First things first, these are not shaving cream; they’re actually shaving foam. Shaving cream is more like face cream, and that deserves its own episode a…
Homeroom with Sal & Lester Holt - Friday, August 14
Hi everyone, Sal here from Khan Academy. Welcome to our homeroom live stream. Very excited about the conversation we’re about to have with Lester Holt. Uh, before we jump into that conversation, I will make a few of my standard announcements. Uh, one, j…
How to get leads in Real Estate
What’s up you guys, it’s Graham here! So today I’m going to be making a video about how to get clients and get leads in real estate. I’ll be starting with some really obvious ways first, and then working into a few more unorthodox approaches that you can …
Change in demand versus change in quantity demanded | AP Macroeconomics | Khan Academy
What we’re going to do in this video is a deep dive into the difference between demand and quantity demanded. In particular, we’re going to focus on change in demand versus change in quantity demanded. And so just as context, I have price versus quantity…
Calculating correlation coefficient r | AP Statistics | Khan Academy
What we’re going to do in this video is calculate by hand the correlation coefficient for a set of bivariate data. When I say bivariate, it’s just a fancy way of saying for each x data point, there is a corresponding y data point. Now, before I calculate…
How much money I made from 1M views- How to make money on Youtube
You probably saw YouTubers buying luxury cars, designer clothing, and expensive houses. And I’m pretty sure that you have at least for once wondered how much do these YouTubers make. So in this video, I’m gonna show you exact data of how much money I made…