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- cross-posted to:
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A lot of Redditors hate the Reddit IPO | Reddit warned us that its users were a risk factor, and boy do they sound excited about shorting its stock.::Reddit seems like a likely candidate for a meme stock. But the actual reaction suggests that r/WallStreetBets isn’t going to send the stock to the moon.
Thanks for the response. But on this:
Do what on their own? I don’t quite follow what you are alluding to here.
Assessment of the company, its current finances, its past finances, and hopefully that will give them a decent forecast of the company’s future viability.
In reality it’s all just gambling.
Public fundraising laws exist to protect the average Joe from losing his life savings to fly-by-night hucksters while trying to ensure companies can still raise capital.
If you’re a wealthy/sophisticated investor, the expectation is that you’re already capable of assessing investment risk on your own (including, if you think necessary, getting your own lawyers, direct access to a company’s financial reports, due diligence, etc). Average Joe, on the other hand, is required to be given audited financials, a prospectus that’s vetted by regulators, explicit statements of share rights, etc etc.