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Re: bootysweat post# 12736

Thursday, 02/13/2014 2:41:22 PM

Thursday, February 13, 2014 2:41:22 PM

Post# of 18376
Yes because their model is that they can gain back money on their investment in the market by having an agreed upon advantage, that way when many of the high risk companies they invest in go bankrupt they can at least have gotten a portion of their original loan, or even some profits, depending.

That doesnt mean they dont care if the company does well. It just means they can play the market to make money. Basically its a way of using us to fund these companies through our investments. That doesn't mean the company cant do fantastic and make lots of money for a shareholder if 1. They buy at the right time 2. They hold until their shares reach a desired value

They dont just invest in any company. They strategically choose companies they think have a shot at success.

They would probably not even break even if they chose all companies that went bankrupt.

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