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If I agree to an upper limit on profit after which I have no ownership, I’m buying a bond or note rather than a share. Bond investors want low risks and expect

If I agree to an upper limit on profit after which I have no ownership, I’m buying a bond or note rather than a share. Bond investors want low risks and expect to be paid back reliably on schedule or you could be forced into bankruptcy. It’s a bad fit for a startup facing a lot of unknowns. Does a co-op do anything more effectively to make up for limited access to capital? It sounds like dividing a smaller pie.

kerkeslager 4y ago
> If I agree to an upper limit on profit after which I have no ownership, I’m buying a bond or note rather than a share. Yes, I know. I'm saying that stocks are a tool that allows people to continue leeching off society far beyond the point where they've been fairly rewarded for their initial contributions. > Bond investors want low risks and expect to be paid back reliably on schedule or you could be forced into bankruptcy. It’s a bad fit for a startup facing a lot of unknowns. That's a pretty large generalization which is incorrect in many cases. Bond terms and risk levels can vary quite wildly. > Does a co-op do anything more effectively to make up for limited access to capital? It sounds like dividing a smaller pie. Compensates and otherwise treats its workers fairly. It's worth noting that not all incentives are monetary.