Valid questions indeed, and ones that apply to the OTC market as a whole, most startups do use shares to fund their efforts until they begin production of whatever products they make/sell/excavate, it's not the exception, it's the norm....so in light of that, I fail to see your point.
Are you trying to convince yourself not to trade in penny stocks?
Because it sounds like it may be a little too risky for your blood, you might want to stick with established companies on the big board, take your 3-5%, collect your little bit of mailbox money, and be fairly safe with your investing strategy. Spend your time on personal projects, and with family. Develop some harmony and don't watch these sorts of stocks, they can be very upsetting for those with more sedate constitutions.
Good Luck!
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