Stock and Bond Markets Dethroned: Private Fundraising Is Now Dominant • Hacker News Board

Re: Stock and Bond Markets Dethroned: Private Fundraising Is Now Dominant

#111

Post by MR4D » Wed, Apr 04, 2018, 4:26 AM UTC

maerF0x0 wrote: post #18

I've long thought about a law whereby companies over some 409a valuation must allow public trading of their stock. For example maybe all companies over $5B or some other quite large valuation would be required to allow public sale of stock. This would be good for much of society. It gives liquidity to employees, it creates a market forces valuation, it allows pensions and other institutions to more accurately index t…

Hers’s One complication:

Assume I start a business. I own 100% of it. It grows like crazy, and 5 years later, it’s worth $5 billion. Now you require me to go through all the regulatory hoops so that my stock can trade publicly. But nobody will buy my stock. Because there is only one owner, and he ain’t selling.

Simplistic, I know, but problems very similar to this actually exist.

Re: Stock and Bond Markets Dethroned: Private Fundraising Is Now Dominant

#112

Post by patentatt » Wed, Apr 04, 2018, 8:20 AM UTC

conanbatt wrote: post #98

patentatt wrote: post #91

Earlier quoted context omitted.

So much wrong with everything you said. First, the cost of speculative gambles is economic collapse. Such gambles were a root cause of the Great Depression. Second, how exactly is regulating investment going to cost anybody their job? Think it through. Maintaining the current state of regulation will have an effect now because ... ? It doesn’t make sense. Third, and this is by far the dumbest thing you said, of cours…

> First, the cost of speculative gambles is economic collapse. Such gambles were a root cause of the Great Depression A man has earnt a nobel prize of economics by detailing how the federal reserve's money supply policy was the most noticeable trigger of the 1930's economic collapse. But even if you disagreed with that, speculation is definitely not what caused the great depression. - The popular fear of engrossing a…

Well I hear Somalia is great this time of year and they have very little regulation of oversight to speak of, perhaps you’d feel more liberty there? Or if that’s too warm of a climate for you, there are portions of Antarctica that are accessible most of the year. And I don’t despise libertarians, at all. I used to identify very strongly with both the political party and the philosophy. And then I grew up.

Re: Stock and Bond Markets Dethroned: Private Fundraising Is Now Dominant

#113

Post by kspaans » Thu, Apr 05, 2018, 9:01 PM UTC

MR4D wrote: post #108

kspaans wrote: post #37

Earlier quoted context omitted.

False! SNAP has been explicitly excluded from the S&P500 index for exactly this reason[0]. I'm not sure if "whole market" passive funds would include it or not. At the very least VTI has 0.03% of assets in SNAP[1]. Not much to worry about. 0 - https://uk.reuters.com/article/us-snap-s-p-idUKKBN1AH2RV 1 - https://www.etfchannel.com/symbol/snap/

You’re confusing the maintainer of the index’s ( Standard & Poors) with the implementation (Vanguard). If S&P puts a company in, Vanguard will buy the shares. Not doing so could cause problems, including lawsuits.

Yes, and as I said the S&P500 index excludes companies like Snapchat with the founder-has-most-votes trick. I suppose the real issue here is how much money goes into which indices, and which ones exclude companies like these.