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
This Intimate Look at a Woman's Last Days Will Touch Your Soul | National Geographic
I’m not afraid of dying. Sometimes I think dying is a relief. I would rather pass on than to not be able to have any good times. The thing I miss the most is not being able to see the cards and play cards. I miss going to bridge. Can’t eat much at times. …
Definite integrals intro | Accumulation and Riemann sums | AP Calculus AB | Khan Academy
What we’re going to do in this video is introduce ourselves to the notion of a definite integral. With indefinite integrals and derivatives, this is really one of the pillars of calculus. As we’ll see, they are all related, and we’ll see that more and mor…
Why It's Better to be Single | 4 Reasons
The romantic ideal of two people pair-bonding and staying together for a long time is still very much alive. However, in the current age, we can see that an increasing amount of people deliberately chooses to stay single. Especially in the West, marriage …
How To Measure The Tiniest Forces In The Universe
This is 10 micrograms. You think that I might be able to see? I think you might be able to. Oh boy. It’s an arrow right there. Yeah, yeah, yeah. This flashlight will help. I feel like I need to get video of this. [Dr. Shaw] I don’t know how. (Dr. Shaw la…
Schopenhauer: The Philosopher Who Knew Life’s Pain
When Arthur Schopenhauer was walking his poodle, he looked at the world with sadness. He saw humans and animals struggling to survive in a world they never chose to be in. And from the day they were born, the suffering only worsened as they contracted dis…
She Sails the Seas Without Maps or Compasses | Podcast | Overheard at National Geographic
Foreign, I like to think of the voyage and canoes as taking us back in time on the ocean. The Hua Kamalu is a navigator with the Polynesian Voyaging Society. I’ll often ask my crew, like, what do you think it would have been like to show up in Hawaii as t…