Dienstag, 19. März 2013

A Ghetto Stock Market?

Cameron Keng: 

There are two main types of crowdfunding sites on the internet these days – ghetto stock markets and pre-sales sites.

Ghetto Stock Markets

Ghetto stock markets sites are websites like Fundable and Rockthepost.  They accept investment for startups and companies that generally require a minimum investment of $1,000 dollars.  The top questions you should be asking are:

Can anyone invest?

Will this rule change?


Full text by Cameron Keng, FORBES



The Comments:

No one expects startups to pay dividends….so, your comments about getting/not getting dividends makes no sense to me.

This was precisely my thought as well. A startup paying dividends is completely counterintuitive to being a startup. In fact, it would probably be amongst the worst business decisions a startup could make. Calling something a startup implies that there are a lot of opportunities to invest in the growth of the business. When the startup is actually making enough money to pay out dividends, it is no longer a startup, and it is no longer in a stage to be concerned about the costs of filing for 1099-DIVs.

You’re entire argument about taxes is based on the presumption that startups should be giving out dividends.
Extremely hard to take this article seriously when there’s a blatant typo in every other sentence. I’m shocked that Forbes allows this..
**You need earn at least >> Missing the word ‘to’
**10% of the amount raise in “crowdfunding.” >> ‘raise’ should be ‘raised’
**“crowdfunding” and normal day-today operations >> the term is ‘day to day’ not ‘day today’
**repeated cases of identity theft liked Citibank. >> ‘like’ should be ‘liked’
**Pre-sale or law-away plan >> the term is ‘layaway’ not ‘law away’
…and there’s about 10 others in addition to those.

One more thing: you should be providing full disclosure if you are going to publish an article like this and you are the founder of “a company that automates taxes for small & mid-size businesses.”

I’m very surprised that Forbes allowed an article with a pretty offensive, ignorant, and politically incorrect title to be published, and I wouldn’t be surprised to not be the only person offended by it, or at least see it as a red flag.