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 Coca Cola Still Spends Billions On Ads
For over a century, Coca-Cola has been selling the most successful product in the history of humankind. Since its humble beginnings in 1886, when John Pemberton first brewed a mixture of cocoa leaves and cola nuts, Coca-Cola has undergone a remarkable tra…
Scientific polling introduction
In this video, we’re going to think about what makes a poll or a survey credible. Because remember, the whole reason why we’re going to do a poll or survey is we want to understand public opinion. But if it’s not statistically credible, if we can’t believ…
An Interview with a Meth Dealer | Trafficked with Mariana van Zeller
Foreign [Music] [Music] Hi, I’m Mariana. How are you doing? Fantastic! How many people are you expecting to come tonight? You have a phone full of messages. Yes, tons of them—50 messages. [Music] And everyone there, they’re trying to buy drugs from you. I…
How One Line in the Oldest Math Text Hinted at Hidden Universes
(dramatic music) - [Derek] A single sentence in one of the oldest math books held the key to understanding our universe. Euclid’s “Elements” has been published in more editions than any other book except the Bible. It was the go-to math text for over 2,00…
How to grow a YouTube Channel in 2017: YouTube Algorithm Revealed??
All right, so let’s do this as a total experiment. Like this video and comment something down below. I don’t care if it’s your favorite color, your favorite number, just something. So if my theory is correct, that’s going to increase the level of engageme…
Warren Buffett Just Sold $75 Billion Worth of Stock
Did you see the news? I’ll send you the link. Oh wow, he sold a lot of stock! Warren Buffett, the best investor that has ever lived, is currently selling massive chunks of his portfolio. Berkshire Hathaway released their quarterly earnings report just a f…