Hacker News new | ask | show | jobs
by yellowstuff 3201 days ago
The core social benefit of financial markets is to get capital to where it can be used most productively. This is why Google could get funding in 1998 and why Venezuela can't today.
1 comments

What did Google's initial funding have to do with the securities market?
The angels / VCs that funded it did so with the knowledge that they'd be able to go public later and get their money back out. If there's no market for selling equity in mature companies, there's less incentive for starting or investing in small / growing companies.
So, investors simply don't believe in the existence of income?