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submitted 8 months ago by L4s@lemmy.world to c/technology@lemmy.world

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.

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[-] EatATaco@lemm.ee 4 points 8 months ago

Thanks for the response. But on this:

The idea is that institutional/wealthy investors are savvy enough to figure that out on their own.

Do what on their own? I don't quite follow what you are alluding to here.

[-] AngryCommieKender@lemmy.world 1 points 8 months ago

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.

[-] nmfisher@lemmy.world 0 points 8 months ago

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.

this post was submitted on 24 Feb 2024
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