Ok, explain something else to me about stocks: the company issues stocks, usually an an IPO, sometimes other times, basically taking out a loan, yes? Why does it then matter to the company how much those shares are worth in the future? Why does it care what it's trading at?
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But anyway actual startup investing has much greater potential risks and rewards for the investor, which is why the government puts limits on who can do it If the company is successful you get a share in the profits for as long as the company exists
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If the company goes bust then all your money you put in it is gone and there's nothing you can do about it Which is why investing in startups often involves complex high stakes contracts to determine what rights and assurances the investor gets
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I would think that's the easy part. The hard part would be collecting the money from the failed entity/founder.
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That's what makes it hard (no lawyer will take the job because they won't get paid)
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