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
Shower Thoughts That Make Me Question Everything
I promise it hasn’t been eight months since I last had a shower. This year has just flown by so quickly that I didn’t get time to gather my thoughts. My shower thoughts: dreams are confusing. Some people believe that they can tell the future; others feel …
NASA's Urgent Message | Years of Living Dangerously
I think the future of agriculture in California is really at risk today. Don Cheadle was here, and we were talking about issues of satellite observations of groundwater depletion and how it’s happening in California. Over the last few years, California’s …
Fishin' Frenzy Makes Their Own Path | Wicked Tuna: Outer Banks
[Music] Where are the fish, man? See anything spectacular? I see a lot of water, see a lot of other boats. Yeah, there’s no tuna though. The spot we’re at was hot the last couple days, but apparently it’s all dried up. It makes it extremely difficult for…
Explorers Festival, Thursday June 15 | National Geographic
from a distance it always seems impossible. But impossible is just a place we haven’t been to yet. Impossible is what beckons us to go further, to explore. It calls us from the wild, lures us into the unknown, asks us to dig deeper, to look at things from…
Nat Geo Explorers discuss the importance of inclusive communities | Pride Month Roundtable | Nat Geo
All of the work we do is based and affected by our identities, right? Whether that is conservation or highlighting social stories, all of those cool ideas, we owe them to our differences and our diversity. It makes us stronger, and it makes us think outsi…
DON'T BE A GREEDY PIG!! Shark Tank Behind the Scenes | Kevin O'Leary
Oh, I just love the smell of a good royalty deal in the morning. [Off-Camera] Good morning Clay. Good morning Kevin. [Off-Camera] Hey, morning Ken. This is it. The Shark Tank set, right here. These tables, these chairs. Right here baby. This is where i…