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Schneidku40

08/30/19 11:53 AM

#289077 RE: Vandalayind #289051

Well you are right. But that's what makes the stock market so much better than the "regular" economy. As I once learned in a class or something, of those 90% of businesses that fail in the first year, the majority of them fail due to lack of capital. So it's not necessarily that their business couldn't succeed, but the cost of start up is so high that they just can't get over the first year spending hurdle before costs start to go down and revenue starts to go up. That's where the stock market comes in, those businesses DO have access to that capital needed to weather the tough periods. Yeah there's venture capital and all that, but they fund tech startups, not your Aunt May's bakery. Unless you can go on Shark Tank for funding.