I would argue that any investment scam in which money from new investors gives liquidity to old investors, resembles a ponzi scheme.
Which would be true for any IPO?
Only the ones that never make anywhere near to a profit.
I would qualify that as a situation that repeats itself.
If money from new investors is repeatedly used to pay old investors, it resembles a ponzi scheme.
Re:Lyft prices IPO at top of range
by warp_factor on Friday March 29, 2019 @02:38PM
(#19524336)
only if the IPO price is completely unrelated to the fundamentals, like it is for Lyft currently.
If it is unrelated to the fundamentals, you are in full speculation territory and the only goal buying the stock is to sell it eventually to a bigger fool that will pay more for it.
Re:Lyft prices IPO at top of range
by jacksproit on Friday March 29, 2019 @07:44AM
(#19520744)
The last big downturn was a decade ago. Any traders age 18-28 have never seen a big drop and likely don't comprehend the extent of the risks IMO.
1. Could you please not call something a ponzi scheme, just because it looks scammy? This seems to be a trend that has caught on during the crypto-bubble (where admittedly there where a lot of ponzi schemes), but not every scam is a ponzi scheme.
2. Whoever trades on the stock market knows the risks.
Whether the pre-IPO VC funding cycle is a ponzi scheme is another topic...