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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Yeah - at best, it'd be a form of gambling, but it would be extremely open to fraud, or just large-scale failures costing people thousands. Securities transactions are very heavily regulated, which comes with some drawbacks.
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A big one being access: most people with $1,000 to invest will not be able to access risky startups, which means that they aren't going to be the ones profiting when a company suddenly hits it bit.
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The only profits they can offer you are extremely indirect (selling you a "collector's item" that, if the company someday becomes a household name, will be worth lots of money)
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