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"A pyramid scheme is an unsustainable business model that involves promising participants payment or services, primarily for enrolling other people into the sch
by pearjuice 13y ago
"A pyramid scheme is an unsustainable business model that involves promising participants payment or services, primarily for enrolling other people into the scheme, rather than supplying any real investment"
"By selling some of its holdings, she said the firm is able to return cash to its investors."
welp
- nkohari 13y agoThe amount that you misunderstand what you're talking about is staggering.
- loceng 13y agoThe point is they're not that confident the stock will go up much more. Sure, you could look at it as spreading risk.
- acjohnson55 13y agoIf that were true, they would liquidate much more aggressively. I don't know how much total value in shares they have left, but if you're a venture investor, your goal isn't to tie up all your money in ventures that have already broken through; your goal is to find the next one. If all they wanted to do is go long on stocks, they could do that without all the venture investing.
- loceng 13y agoIf they started to liquidate quickly, so would everyone else - and they'd piss off their co-investors too if they didn't do it fully planned out. Regarding going long on investments in a different way - that won't bring them the same return.
- jf22 13y agoBy selling holdings and not returning cash from new members this scenario is clearly not a pyramid scheme. The quote from the article makes a comparison to a pyramid scheme impossible. Are you trolling?
- Tarang 13y agoI would strongly disagree with this. Using a pyramid scheme is hardly a good analogy with the current financing system we have. Its a pyramid scheme when it doesn't work well & a company when it succeeds if I understand your logic correctly?