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bolder88 | 12 years ago

> When $25b of wealth is being created

Woah there. I think this is the fundamental issue. $25b of wealth hasn't been created. It's not free money. It's a scam.

discuss

SideburnsOfDoom|12 years ago

Could you explain why you think that IPOs are scams that don't actually create wealth? Or is it just this one?

Though I'd rather say that an IPO serves to acknowledge the worth already created by the company before the IPO?

lowboy|12 years ago

I think bolder88 has a problem with the idea that an IPO creates intrinsic wealth, or somehow increases the overall "wealth" of the entire system (either global or within a given country).

Yup, and now the word "wealth" is just a random series of letters when I read it.

wrice314|12 years ago

How has $25B of wealth not been created? The market believes that the price of the stock is a price such that the total company would be valued at $25B. What asset can you own other than the dollar that is not based on market pricing? Is $25B worth of gold today worth $25B of wealth? What if the world woke up tomorrow and thought gold was worthless.

lowboy|12 years ago

I think you have different requirements on what constitutes "wealth".

bolder88|12 years ago

If you print some more money is that wealth?