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
Isotopes | Atoms, isotopes, and ions | High school chemistry | Khan Academy
Every element is defined by the number of protons in its atoms, which is called its atomic number. So, for example, every atom of potassium has 19 protons, and every atom of cobalt has 27 protons. But what about neutrons? Well, an element doesn’t always …
ROBINHOOD STRIKES BACK - THEIR RESPONSE!
Well, ladies and gentlemen, it happened. Amid all the controversy surrounding the recent $0 trade announcement started by the internet bully Charles Schwab, Robin Hood just seemed like it was destined for loss with no competitive advantage whatsoever. Tha…
How to buy a private jet
This is 100% scale of the G stream 550. That’s the three sections I’m talking about. You got the kitchen door here, the galley door, and most airplanes the front section has these four single seats. This is really the normal setup. Again, the normal setu…
Why We Isolate Ourselves and How to Reconnect
I think most of us agree that social isolation is a complex issue. It feels a bit like a classic ‘chicken and egg’ dilemma. We might ask ourselves: did our feelings of unhappiness and despair lead us to retreat into social isolation? Or, conversely, is it…
Will CORONAVIRUS Cause the Next RECESSION | Ask Mr. Wonderful #20 Kevin O'Leary and Mark Cuban
Okay, soft the studio. But before I go, I’m starting to really get into these enemy sunglasses. Yeah, this is Alpha M Steel. Two choices for today: diggin’ these, but also like these—not bad. Hmm, I look spectacular! I’m going with these today. Anyways, …
Plant reproductive success | Organism growth and reproduction | Middle school biology | Khan Academy
[Instructor] We’ve already talked about reproductive success in other videos. It’s related to the number of offspring an organism can have in its lifetime. And so in this video, we’re going to think about strategies that plants will use for reproductive s…