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
Concrete and abstract nouns | The parts of speech | Grammar | Khan Academy
Hello Garans. So today I’d like to talk to you about the idea of concrete and abstract nouns. Before we do that, I’d like to get into some origins—some word origins or etymology. Um, so let’s take each of these words in turn. I think by digging into wha…
how to procrastinate productively
Do you procrastinate a lot? I’m sure you do. There are countless videos, books, podcasts, any sort of content about how not to procrastinate and, you know, just get up right away and finish all of your tasks. There are so many of them, and I’m sure that y…
Naming ionic compound with polyvalent ion | Atoms, compounds, and ions | Chemistry | Khan Academy
So we have the formula for an ionic compound here, and the goal of this video is: what do we call this thing? It clearly involves some cobalt and some sulfur, but how would we name it? Well, the convention is that the first element to be listed is going …
Philosophy's Biggest Questions
You’ve probably heard of the trolley problem, especially if you’re at all interested in philosophy or ethics. Lately, it’s been a subject of discussion when discussing autonomous cars and was referenced explicitly in the show “The Good Place.” Some people…
I was TERRIFIED to film this - how to take action!
What’s up you guys? It’s Graham here. So, I’m making this video as a part two to the video I uploaded about two weeks ago about how to get over your fear. On that video, I received this amazing comment from the user named Tristan. Tristan explained that …
Ray Dalio Explains How the U.S. Economic Crisis is Unfolding.
So in either case, we’re going to have a debt problem, and the question is how quickly does it evolve. Uh, in the way that I described, world-famous investor Ray Dalio has been back in the news lately discussing his thoughts on the monster US debt proble…