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The way the market is structured retail traders are indeed the tail. You have founders, seed rounds, angel investors, VCs, Private Equity and maybe eventually
by xchaotic 6y ago
The way the market is structured retail traders are indeed the tail.
You have founders, seed rounds, angel investors, VCs, Private Equity and maybe eventually public stock market. So by the time retail traders get their hands on it, the value has been recycled and inflated many times over.
- icedchai 6y agoYou could also look at it this way: by the time an equity has made it to the public markets, it's been through a quality filter. Think of all the founders, seed rounds, angels, VCs that had companies that went to zero. That does happen with public companies, but it is much rarer.