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
Collecting Crab Pots | Alaska: The Next Generation
You’ll learn as you’re going and get older, you make your own shortcut. You’ll always make it back home. Ready, Glyn? Oh, yeah. Glyn and I are off to pull out crab pots from Olga Bay, where he has one and I have one. And that increases our chances of get…
Horses vs. Horsepower: Watch Historic Rides Race Each Other | National Geographic
History is important, and we get hundred-year-old vehicles out and run. We feel that the educational aspect of someone being able to see these cars in motion is well beyond what someone would learn simply by watching the cars in a museum. Welcome to Race…
The 5 Forces Impacting the World Order
Your analysis of economic historical events is based on five forces, and I’d really like to start this conversation by getting you to just quickly summarize those five forces. Okay, uh, just to give you a little bit of background, I um, I’m a global macr…
Polar functions derivatives | Advanced derivatives | AP Calculus BC | Khan Academy
What we have here is the graph of r is equal to sine of two theta in polar coordinates. If polar coordinates look unfamiliar to you, or if you need to brush up on them, I encourage you to do a search for polar coordinates in Khan Academy or look at our pr…
How I spend my $163,800 per month income
What’s up you guys? It’s Graham here. So this is one of those videos where if enough people are asking for a certain video topic, I will go ahead and make it. Like I said, this is one of them. After posting my income breakdown video where I went over my …
The Dark Side of Kindness: 8 Unexpected Drawbacks | STOICISM INSIGHTS
In a world that celebrates kindness and generosity, we often overlook the potential downsides of being excessively giving. Today, we’ll explore the unexpected ways in which boundless generosity can harm you. In this episode, we’ll delve into the darker si…