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Markets do not allocate capital, they provide liquidity for investors making them more likely to invest during stock offerings in the first place.
by murbard2 10y ago
Markets do not allocate capital, they provide liquidity for investors making them more likely to invest during stock offerings in the first place.
- eru 10y agoThose are just different faces of the same coin.
- murbard2 10y agoNo, well functioning exchanges affect the amount of capital that gets invested in ventures not how well it is allocated.
- eru 10y agoPeople are looking forward. How much money individual startups can raise (or established companies when increasing capital) depends on their expectations of future prices on the exchanges.