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Technology Stocks : George Gilder - Forbes ASAP

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To: Brad Rogers who wrote ()5/6/2000 12:03:00 PM
From: greedsgd_2000   of 5853
 
"Consider the following quote from Pat on Post #3956:

"If Avanex has real products, they may very well succeed. The question investors have to ask --- and I believe someone did --- is what price you're willing to pay to own a piece of the company. MCI Ventures paid 13 and anything investors pay above that is subsidizing the products they buy."

Is there a new investment rule that states any stock price paid above venture capital share prices merely "subsidizes" the product or services a company produces? In 1996 AOL sold for the equivalent of a split adjusted 3 dollars per share. The venture funds I believe paid far less than 50 cents per share in most cases. Does that mean a $3.00 dollar per share open market stock purchase by an individual shareholder in AOL in 1996 (six times the venture rate) - would simply be a "subsidy" for AOL?

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