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
Impacts of Urbanization| AP Environmental science| Khan Academy
[Instructor] In this video, we’re going to talk about cities. Today, more than 50% of the world’s population lives in a city, and this percentage grows every year because of something called urbanization. Urbanization is the creation and growth of cities,…
Best Doorstop EVER? -- LÜT #15
A tentacle dress and cheeseburgers flip flops. It’s episode 15 of LÜT. Keep your doors open with NeatoShop’s gross gutsy zombie doorstop. Or be a superhero with these hoodies. Look how serious he is. Keep your dog warm with this scarf. I mean, let’s talk…
A Mexican Wolf Pup’s Journey into the Wild | Podcast | Overheard at National Geographic
Foreign [Music] This is what it sounds like to explore New Mexico’s Gila Wilderness on horseback. On a recent assignment for National Geographic, I got to venture deep into the Gila with a photographer, podcast producer, and a backcountry guide. The Gila …
Proof of the tangent angle sum and difference identities
In this video, I’m going to assume that you already know a few things, and we’ve covered this. We’ve proved this in other videos that sine of x plus y is equal to sine of x cosine y plus, and then you swap the cosines and the sines: cosine of x sine y. T…
Free Higgs!
[Music] to [Music] do [Music] me SP [Music] yeah twice right let’s go yeah that’s the H right there that’s what we like we do yeah yeah yeah. Now, congratulations to you! Thank you. What is the Higgs Boson? It is a particle, and it describes the stuff ab…
Nonstandard free energy changes | Applications of thermodynamics | AP Chemistry | Khan Academy
[Instructor] Understanding the concept of nonstandard free energy changes is really important when it comes to a chemical reaction. For this generic chemical reaction, the reactants turn into the products. And nonstandard free energy change is symbolized …