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
It's Over: China’s ENTIRE Economy Is About To Collapse
Tens of thousands of them have begun withholding payments for unfinished projects. A massive protest over frozen bank deposits. The international community and the financial markets will also feel the pain. “What’s up, guys? It’s Graham here. So I recent…
Awesome Atmosphere SCIENCE!
Vsauce, are you leaning back right now? Of course, you’re not. But you will be soon, because a new episode of Vsauce Leanback has just been released, and to start it, click the link at the top of this video’s description. This week’s topic is really fun.…
Word problem subtracting fractions with like denominators
After a rainstorm, Lily measures the depth of several puddles in her backyard. She records her results in a table. So, here are three different puddles, and she measures the depth in inches. Then we’re asked: how much deeper was the puddle under the swin…
Bitcoin: The Currency of The Internet
Over time, things tend to change a lot. Earth was once devoid of life, and then one day, it wasn’t. Horses used to be a normal form of transportation. Fast forward a hundred years, and we now have half a million pounds of metal to sit in as we soar 400 mi…
Confronting Pokimane | Inside The Million Dollar Empire
What’s up guys? It’s Graham here. So, a few weeks ago, dozens of you began sending me this video. It was of a Twitch streamer who goes by the username Pokey Main, who reacted to my feature in Glamour titled “How YouTuber Graham Stefan Lives in LA and Make…
Best Spot in the Microwave? - Smarter Every Day 6
[Music] Okay, it’s me, Destin. I am here with Mike Simons at the National Electronics Museum, and he’s going to show us something that we interact with every day that you probably didn’t know. So, what do you got for us, Mike? (Mike) We have a microwav…