Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: Andrew G. who wrote (72194)	2/27/2001 2:20:33 AM
From: Don Lloyd	Read Replies (2) \| Respond to of 436258

Andrew - "The existence of the stock market thus both increases the reward and reduces the risk of an entrepreneur and his backers as a new venture is contemplated." Dare I counter that argument with statistics on how many IPO's from 2000 are presently deep underwater, or do you still insist that this is the case ? This supports, rather than refutes, my thesis. The mere bringing to market of the IPO has, in all likelihood, assured at least a minimum positive return on investment for the entrepreneur and his backers. The fact that an IPO investor faces a high degree of volatility only assures higher rates of return assuming a prudent degree and quality of diversification. Assuming a log-normal model for stock prices means that only a 100% gainer is needed to offset every 100% loser and that overall portfolio gains increase with increasing volatility. Regards, Don