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
Why Do You Make People Look Stupid?
Hey Youtube, you said you wanted to talk. What’s up? Why do you go around making other people look stupid? What do you mean? What’s water made of? Water. Hahaha, what makes water? Water. Ok, what elements does it take to make water? H2O. So what …
We Are Qualitatively Different From Other Species
Now you’re pointing out a minority opinion there. I think culture is still stuck in the second part of what you were saying. Originally, we thought that we were at the center of the universe. This was the religious conception of man’s place in the cosmos.…
Watch this Octopus Devour Crabs as It Jumps in the Water | Insane Animals | Secrets of the Octopus
Positioning rocks to make the perfect cover, the trap is set. Well-earned brain food. The island octopus has thought up, tested, and executed a killer hunting technique. Six months old, entirely self-taught, and already an accomplished strategist, as she…
What you MUST KNOW about Robinhood Investing
What’s the guys? It’s Graham here. Now, normally I would never make two Robin Hood videos like this back-to-back, but I gotta say, this entire event has been extremely mind-boggling. There have been some new events that have just come up over the last day…
Reshma Shetty, Founder of Ginkgo Bioworks at the Female Founders Conference
Thank you all for being here today. It’s a real honor to be around such an amazing group of women. I’d like to thank Sharon and Kat for inviting me to come talk to you all. It’s a real honor. As Jessica said, I’m a co-founder of a company called Topeka Bi…
Feathers in Flight: The Bird Genoscape Project | National Geographic
We are on the Kern River Preserve. It’s beautiful to walk on the preserve this time of year. The mornings are really cool. This time of year is also amazing because you’re hearing all the bird song earlier in the morning. The willow flycatcher is this sma…