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Good advice, but what about Kiva.org? Don't they essentially act in the same way? Granted, there is no real return offered.
by run4yourlives 18y ago
Good advice, but what about Kiva.org? Don't they essentially act in the same way? Granted, there is no real return offered.
- nostrademons 18y agoI'm not a lawyer and hence not qualified to give legal advice. I can only speculate (always a dangerous thing)... I'm guessing that it has everything to do with a real return not being guaranteed. Same goes for Prosper.com and MicroPledge. Anyone can raise money for anything on the Internet: folks do whip-rounds via Paypal to buy friends a new laptop. But if you want the legal guarantees of stock ownership, etc, you need to file the appropriate disclosures. </not-legal-advice>
- run4yourlives 18y agoHeh, this is pretty interesting: http://www.prosper.com/help/topics/lender-quiet_period.aspx http://www.prosper.com/help/topics/lender-quiet_period.aspx
- cabalamat 18y agoYou're right, lenders on Kiva aren't paid interest. Kiva's founders have said this is so they don't have to comply with burdensome investment legislation.
- aasarava 18y agoLenders to Kiva also aren't buying securities -- they're providing money to a microfinance institution which then distributes the money as promised, hopefully to return it later. Should the loan not be repaid, the lender has no rights to any assets.