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If you have a great idea but no resources to realise it, you create a limited liability company, issue stock to the market to raise money to create your busines
by jseban 5y ago
If you have a great idea but no resources to realise it, you create a limited liability company, issue stock to the market to raise money to create your business. It's just a way to raise money to create products, inventions etc. Like crowdsourcing except you get a share in the company instead of giving it as a donation for a sticker or a t-shirt.
Edit: a ponzi scheme would be if the company is constantly issuing more and more stock at an ever increasing price, and do not have any other actual revenue but somehow is faking this for the market to believe.