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
Top 4 WORST Video Games Coming out this Fall :)
Welcome to the wack gamers. Yeah, we’re gonna follow up our Fall 2010 best games video with a new video! Yes, we thought we’d focus on the games we don’t really want to buy: the worst of the worst coming out this fall. And these aren’t fake; these are rea…
Calculations using Avogadro's number (part 2) | Chemistry | Khan Academy
Let’s solve a few numerical on Avogadro number and moles. Here’s the first one: how many glucose molecules are in 2.37 moles of glucose? Let’s quickly remind ourselves what moles are. Moles are like dozens. Just like how one dozen equals 12, a mole repre…
Finding decreasing interval given the function | AP Calculus AB | Khan Academy
So we have the function ( f(x) = x^6 - 3x^5 ) and we want to know over what intervals is ( f ) decreasing. We’re going to do it without even having to graph ( y = f(x) ). The way we do that is we look at the derivative of ( f ) with respect to ( x ) and t…
SPOT THE FAKE !! -------- DONG
Hey, Vsauce. Michael here, coming from Kansas for the 4th of July. Why Kansas? Well, because out here you can do anything. You can even put a firework store next to a gas station. But enough about the real world, let’s talk about DONGs, things you can d…
The 2023 Recession Keeps Getting Worse
What’s up Grandma? It’s guys here. So while everyone is busy watching Tesla drop the price of their cars by up to 20%, we’ve got another issue quietly brewing behind the scenes. That’s the fact that the United States is quickly running out of money, with …
How to get leads in Real Estate
What’s up you guys, it’s Graham here! So today I’m going to be making a video about how to get clients and get leads in real estate. I’ll be starting with some really obvious ways first, and then working into a few more unorthodox approaches that you can …