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One would hope. As long as everything is fully disclosed, an investor may purchase without recourse. For example, M. Cuban achieved a $1 billion valuation of
by jsprogrammer 11y ago
One would hope.
As long as everything is fully disclosed, an investor may purchase without recourse.
For example, M. Cuban achieved a $1 billion valuation of a company on $3.1 million in revenue and $2.7 million in net losses. This was transformed into a $5.7 billion exit months later. Yahoo's market cap was then chopped down by about 80% over the next few years.
- danieltillett 11y agoThere is still a moral duty of care towards non-sophisticated investors. You can make an argument that an investor that buys a company knowing all the risks and who is able to rationally evaluate the risk is responsible for their actions, but many investors are not able to determine the risks involved.
- jsprogrammer 11y agoAn investor who cannot determine risks is not really an investor. More of a cash supply.