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
Hard Pill to Swallow | Badlands, Texas
Something was taken from Tringa that can’t be given back. I don’t think in my lifetime Tring was ever hit this hard. This was an atrocity; that’s a hell of a thing for a community to try and swallow. But they ain’t going to forget. Tony Flint just walked…
Triangulation Is One of My Keys to Success
There are two schools of thought. Some entrepreneurs believe that mentors and coaches are a huge integral part of their life. I know that I’ve had spiritual mentors, financial mentors, career mentors. I’ve had mentors in every area of my life. I see you a…
Homeroom with Sal & Kristen DiCerbo
Okay standby. I realize I didn’t put the links to both of these. Hi everyone, welcome to our daily homeroom live stream! Sal here from Khan Academy. For those of you who are wondering what this is, this is our way of staying in touch. We started doing th…
Crystalline and amorphous polymers | AP Chemistry | Khan Academy
Let’s talk a little bit about crystalline and amorphous polymers. Now, in previous videos we talked about crystalline versus amorphous solids. Crystalline solids have a very regular pattern; maybe they look something like this if you imagine the particle…
15 Things That Make You WEAKER
Growth begins when we begin to accept our own weakness. Jean Vanier. Do you know there are some things you indulge in that could make you weak? Sometimes those things could be harmful to your health and, of course, lead to unproductivity. Weakness, simpl…
This is why we can't have nice things
This is a video about things like cars, phones, and light bulbs and an actual conspiracy that made them worse. This video was sponsored by NordVPN, more about them at the end of the video. I am outside Livermore Fire Station, number six. And in here, they…