07/18/2024
JamesVeicS
Pension funds and insurance companies invest in venture capital funds to profit from the higher-than-average possible returns of successful startups. they understand the risks associated with investing in early-stage companies, and by allocating a portion of their assets to venture capital, they contribute to the long-term growth of these businesses.
high expectations : companies targeted by growth investors typically have a history of robust revenue and profit growth momentum : investors seek stocks with upward price momentum, as increasing demand for these stocks may drive prices even higher risk tolerance : growth stocks can be volatile, and investors must be prepared to weather price swings.
more information <a href=https://financial-equity.com/investment/invest-in-stocks/can-you-lose-more-than-you-invest-in-stocks-understanding-risk-in-the-stock-market/>https://financial-equity.com/investment/invest-in-stocks/can-you-lose-more-than-you-invest-in-stocks-understanding-risk-in-the-stock-market/</a>
tenev: nowadays, it's sort of a relatively common amount. i shouldn't say common, but a lot of companies, especially ones that have capital requirements to get started, actually need to raise the capital. so for robinhood, we didn't really have much of a choice, because the regulators required showing some amount of capital on our balance sheet before approval to launch the service. they don't want just a broker to come up with no capital and get a bunch of customers and then close up shop overnight. that's a really bad situation.
senior editor, wealth.