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Isn't equity markets the kickstarter? You don't issue bonds to non-existent companies with a fresh idea. That's what equity (usually via VC) does.
by dx034 9y ago
Isn't equity markets the kickstarter? You don't issue bonds to non-existent companies with a fresh idea. That's what equity (usually via VC) does.
- chrismealy 9y agoThe stock market actually does the opposite of raise money. More dollars go out with share buybacks than are raised with new issues. It's mostly used for equity owners to cash out. I mean, hardly anyone would own stocks if they weren't liquid, so it does aid investment, but not directly.
- jasoninprivate 9y agoI should have better qualified my statement as Kickstarter is used by both new companies and ones with established revenue.
- JumpCrisscross 9y ago> Kickstarter is used by both new companies and ones with established revenue Sure, Kickstarter is like the capital markets in that both give companies money in exchange for promises, not goods or services. Not sure how useful this analogy is.
- deleted 9y ago[deleted]