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
The Housing Market Bubble Just Popped
What’s up you guys, it’s Graham here! So we have to talk about what’s going on with the housing market because it was just found out that prices are continuing to go higher. Wait, what? Yep, you heard that correctly! Even though housing starts have dropp…
Mind Field Season 2 - Official Trailer
[yelps] Understanding of the human mind isn’t complete unless it considers everything the brain is capable of. ♪♪ When is it okay to risk harm in the name of science? ♪♪ I’m about to find out. ♪♪ I’m a little anxious about what’s about to happen. This wil…
How Large Can a Bacteria get? Life & Size 3
In and out, in and out, staying alive is about doing things this very second. Your cells are combusting glucose molecules with oxygen to make energy available, which keeps you alive for another precious moment. To get the oxygen to your cells, you’re brea…
You Can't Win Until You Overcome These Obstacles
It’s just a matter of time until you have to overcome these, so you might as well get ready. Here are 15 obstacles you will be facing in life. Welcome to alux.com, the place where future billionaires come to get inspired. Number one: your parents’ limite…
The Most Important Decision is Getting Started – Laura Behrens Wu
Hello, I’m Carolyn Levy, a partner at Y Combinator, and I’m delighted to introduce our next speaker, Laura Behrens, who is the founder and CEO of Shippo. Shippo makes it easier and more affordable for e-commerce companies to ship goods. Laura and her co-f…
The Pirate's Perspective | Lawless Oceans
Why did you want to go into piracy? But what made you want to conduct piracy locally? Is it a little way you or the other one for the oven can grow up? Yeah, I’m getting my devil on. Call myself the other one until the work was enough. The National Guard…