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
How to sell private jets!
Occasionally, we’ll buy an airplane and then mix it up and then resell it on. But the majority of the time, we’re acting as an exclusive agent to represent either a buyer or a seller. For most of my career, we would always represent the seller and try to…
How Eating Out Keeps You Poor!
I just love this place, don’t you? I know it’s kinda expensive, but everything’s so top notch! Hey folks. Know what you want? Yes! I’d like to eat the Down Payment on a House, with a side of flambeed Emergency Fund. Excellent choice. And for you, sir? …
Addition and subtraction with number lines | 2nd grade | Khan Academy
[Voiceover] Which number line shows 47 plus 22? Let’s see, in this first number line we’re starting at 47, then we add 20 to get to 67. And then we add two to get to 69. So if you add 20, and then you’re adding two, you’re adding 22. So this one seems r…
Part-to-whole relationships in text structure | Reading | Khan Academy
Hello readers. Today we’re going to be talking about how smaller sections of text work together to support the whole text. But first, let us consider Voltron. It is a giant robot made up of five smaller robots, each one piloted by a person. Five friends, …
THROW BABIES !!! .... IMG! #22
The way the Ninja Turtles should have been, and a loaf of bread who can’t believe you sliced him. It’s Episode 22 of [Music]. IMG, uh hi, can we have a talk? This cloud looks like a dinosaur, this one’s a fish, this one is the Grim Reaper. We’ve got a do…
Explorer Albert Lin descends into an epic underground cavern
[Music] [Applause] I’ll take that, yeah, the ASAP. Okay, you’re double backed. I’m double backed. Rising to over 9,000 ft, these mountains have a different climate to the aid deserts below. During the monsoon season, rainstorms can lead to flash floods, c…