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> like they are legal ponzy schemes 1. Could you please not call something a ponzi scheme, just because it looks scammy? This seems to be a trend that has caug
by hobofan 8y ago
> like they are legal ponzy schemes
1. Could you please not call something a ponzi scheme, just because it looks scammy? This seems to be a trend that has caught on during the crypto-bubble (where admittedly there where a lot of ponzi schemes), but not every scam is a ponzi scheme.
2. Whoever trades on the stock market knows the risks.
Whether the pre-IPO VC funding cycle is a ponzi scheme is another topic...
- yaseer 8y agoI would argue that any investment scam in which money from new investors gives liquidity to old investors, resembles a ponzi scheme.
- hobofan 8y agoWhich would be true for any IPO?
- joosters 8y agoOnly the ones that never make anywhere near to a profit.
- yaseer 8y agoI would qualify that as a situation that repeats itself. If money from new investors is repeatedly used to pay old investors, it resembles a ponzi scheme.
- warp_factor 8y agoonly if the IPO price is completely unrelated to the fundamentals, like it is for Lyft currently. If it is unrelated to the fundamentals, you are in full speculation territory and the only goal buying the stock is to sell it eventually to a bigger fool that will pay more for it.
- jacksproit 8y agoThe last big downturn was a decade ago. Any traders age 18-28 have never seen a big drop and likely don't comprehend the extent of the risks IMO.