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
Risking My Life To Settle A Physics Debate
This propeller craft was built to settle a physics debate because what its creators claim it can do is so counterintuitive that it seems to violate the law of conservation of energy. So I’ve come here to drive it myself and see if it really works. And is …
It Started: The Housing Market Is Collapsing
Home prices are starting to fall. Buyers haven’t been this pessimistic in a decade. The housing recession will probably end up being more severe. What’s up, Graham? It’s Guys here. So as much as we joke about how Millennials are patiently waiting for the…
Stunning Footage: Epic Animal Migrations in Yellowstone | National Geographic
[Music] The greater Yellowstone ecosystem has some of the most incredible Wildlife migrations in the [Music] world. We have the nine major elk migrations radiating out of the national parks and Wilderness areas every year. The famous 120-mile Pronghorn mi…
How Kodak Exposed Nuclear Testing
Part of this video was sponsored by HBO Max and their new show Raised by Wolves. [Music] There’s a place in the New Mexico desert open to the public for just two days out of the year. But I got to visit by myself, with only a small film crew. This is the…
7 Anti-Stoic Habits To Remove From Your Life Now! (A MUST WATCH STOICISM GUIDE)
Marcus Aelius, a famous Stoic philosopher, once said: “The happiness of your life depends upon the quality of your thoughts.” This quote reminds us of how our thoughts affect our reality and our health. Just as the people we hang out with can have a big e…
Homeroom with Sal & Fareed Zakaria
Hi everyone! Welcome to the daily homeroom livestream. Very excited about the conversation we’re about to have. I will start with my standard announcement to remind everyone that we are a not-for-profit organization and we can only exist with support from…