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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Replying to @BootlegGirl
It's not taking out a loan. It's letting people buy ownership of it. Then those people have a chunk of property they can hold onto or resell as they please.
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Replying to @BootlegGirl
Honestly I'm not that familiar with how Kickstarter works.
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Replying to @iBreezy6
People give money to a company or creator to make a thing, in exchange for the thing and input over the thing. Only difference is they can't resell that power
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Replying to @BootlegGirl @iBreezy6
So for instance, I was financially irresponsible in grad school, so Torment: Tides of Numenera has a corpse named after me
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Replying to @BootlegGirl @iBreezy6
Kickstarter is kind of simulating the idea of investment without actually being investment (because there are very strict laws about investing in privately held companies, to protect people from being scammed)
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You can, obviously, be scammed on Kickstarter still, but it's a model of fundraising designed to put strict limits on what you were promised when you paid your money, so there's a limit on the liability the company bears if they don't deliver
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Hence the notorious fact that KS fails rarely get taken to court because of the inherent difficulty of organizing a class action lawsuit among thousands of people who are all out $50
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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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(See movies like The Social Network)
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End of conversation
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