So they can express some kind of reliability of their services. So the bankruptcy problems of venture capital markets are mostly the results of common unjustified behavior models. This is easier to achieve with bad than with good businesses. As long as the stock exchange has not enough printed share paper for an increased number of individual investors, in this time of expanding Internet brokerage, the venture capital markets simply settle the problem of a temporary shortage of printed share paper. The question if unexperienced hobby investors should this way be used to finance by their losses the huge profits of others, has a good answer.
Most hobby investors behave like gamblers.
Their losses are hence spending for gambling consumption, not for invest. De contrats traditionels du financement priv . Start-up financing is as old as mankind. The traditional model is, somebody creates a business, somebody else lends the capital and gets some participation in the profits. The disadvantage is, only the stock exchange has lack of printed share paper.