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
Holy Cats! Jerusalem's Strays and Their Unsung Guardian | National Geographic
It’s so sad to see kitten suffering and dying in the streets that I cannot stand it. It will affect my mental health. I can’t pass by a kitten on the street and not rescue it because I know it’s going to have a horrible life until it dies. Holyland cats …
Factors affecting reaction rates | Kinetics | AP Chemistry | Khan Academy
There are several factors that can affect the rate of a reaction. One factor is the concentration of a reactant. Most chemical reactions proceed faster when the concentration of one of the reactants is increased. For example, let’s look at the reaction of…
How Evolution works
Mechanisms of evolution. What is evolution? Evolution is the development of life on Earth. This is a process that began billions of years ago and is still continuing to this day. Evolution tells us how it was possible for the enormous diversity of life t…
A Dangerous Night In L.A. | LA 92
[sirens] DISPATCHER 1: There’s a reported structure fire for [inaudible] 64. DISPATCHER 2: We think it’s a pretty heavy flack on Adams above Holbart. DISPATCHER 3: –checking out. We’ve got bottles through the window. DISPATCHER 2: [inaudible] in that …
Jamming with Astronaut Chris Hadfield
Can I just ask you a question? Because we saw your guitar floating around in space there. What happened to that guitar? Where is it? Because that is a remarkable and unique guitar. It’s a Canadian guitar made by Larry Vay by John Larry Veo in Vancouver. …
15 Lessons Poor People Teach Their Kids
Poor parents can’t teach their kids how to be rich. Growing up poor, you receive plenty of counterproductive advice from people you look up to. Let’s see just how many of these you were taught. Here are 15 lessons poor people teach their kids. Number one…