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I would argue that any investment scam in which money from new investors gives liquidity to old investors, resembles a ponzi scheme.
by yaseer 8y ago
I 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.