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
Cooking a Chicken in a Particle Accelerator #kurzgesagt #shorts
Cooking a chicken with a particle accelerator, how would that work? First, we need a raw chicken. That’s easy. Then, we need a particle accelerator. So, let’s put a chicken in it. To avoid collisions between air molecules and beam particles, we have to p…
Narcotics Hidden in a Toy Car | To Catch A Smuggler
Ready to go? OK. We look for any contraband, agricultural products, narcotics, money, instruments of terror, anything like that prohibited from the United States. So this morning we had an express consignment flight arrive from Germany. What we’re going…
Brave New Words - Bill Gates & Sal Khan
Hi everyone, it’s here from Khan Academy, and as some of you all know, I have released my second book, Brave New Words, about the future of AI, education, and work. It’s available wherever you might buy your books. But as part of the research for that boo…
Krystle Wright Climbs to Capture a Perfect Photo in Moab | Photographer | National Geographic
Today is definitely the day for us to nail this project. We’re all here on a time-sensitive schedule. Thankfully, we found the perfect climb. Angela’s never climbed Seventh Serpent before, but she’s definitely a phenomenal climber. You can throw Angela in…
Engineering with Origami
Engineers are turning to origami for inspiration for all types of applications, from medical devices to space applications, and even stopping bullets. But why is it that this ancient art of paper folding is so useful for modern engineering? Origami, liter…
$1 vs $500,000 Experiences!
I’m about to show you what a half $1 million experience looks like. I promise this is going to blow your mind. In this video, you will find out why it cost a quarter of $1 million to simulate going to space. Why it costs $50,000 to explore the depths of o…