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
Making an Exoskeleton | Breakthrough
It all went down at a place called The Guardian Center, a huge installation where they trained First Responders for earthquakes, terrorist situations. They even have their own subway tunnel with an exploded train. It’s the perfect place to see the Foris e…
Risking My Life To Settle A Physics Debate
This propeller craft was built to settle a physics debate because what its creators claim it can do is so counterintuitive that it seems to violate the law of conservation of energy. So I’ve come here to drive it myself and see if it really works. And is …
My Response To MeetKevin | The Full Story
What’s up you guys? It’s Graham here. So I need to make a video about this because there’s a lot you need to hear. A little over three years ago, this guy reached out to me over email and said we had a lot in common. He told me that he had been watching …
Making Pickled Eggs | Live Free or Die: How to Homestead
[Music] I’m just coming down to the coop this morning and seeing if we have some fresh eggs. There’s a bunch of different nests. We’ve got some whites and some browns and all sorts of different colors. Our chickens are laying more eggs than we can eat rig…
Price elasticity of supply determinants | APⓇ Microeconomics | Khan Academy
In several videos, we have talked already about the price elasticity of supply. In this video, we’re going to dig a little bit deeper, and we’re going to think about what factors might make a supply curve, or supply schedule, or portions of it to be more …
Testing Tesla on the Deadliest Road in America 🐉
This is my dad’s Tesla and I’m going to take it driving on… the Deadliest Road in America. But! I’m not going to be driving because I’ve just installed the full self-driving, pre-release BETA software. It’s only allowed right now on a tiny number of cars …