Hacker News new | ask | show | jobs
by JumpCrisscross 3216 days ago
> equity companies (or at least, purchases of their private equity) are going to go the way of the dinosaur

Source?

1 comments

This year the source is the collective conscious that sees and uses the alternative ways of raising or transmitting capital, who can tolerate the lack of consumer and investor protections because of the immediate liquidity benefits allowing them to manage risk

There is no dissertation on it, at best you'll find some charts showing side by side comparisons of what you get with the antiquated share company - a technology from 1600 AD - with what is available now, and you couple that with the size of the deal flow and extrapolate what can happen next

> [investors] can tolerate the lack of consumer and investor protections because of the immediate liquidity benefits allowing them to manage risk

Huh, didn't think we'd reach this point this fast.

> the immediate liquidity benefits allowing them to manage risk

Sure, everyone loves liquidity and anyone can manage risk in an orderly two-sided market.

If there is 1) no legitimate profit-making endeavor backing your security & 2) no current bid, your security is worth exactly $0. You have faith that we needn't worry about (1) because (2) will never happen. I don't.