The Securities and Exchange Commission of USA on Friday approved rules that pave the way for Main Street investors to take equity stakes in startup businesses raising capital via crowdfunding. The risks for inexperienced investors grows in backing small businesses and startups, said Boris Wertz, founder of Version One Ventures. He said that crowdfunding initiatives that fall under the new classification could attract the wrong type of investors from "people who compare investing in startups to investing in a mutual fund, which would have relatively guaranteed outcomes, when that is not the reality of startup investing."
Which of the following if true supports the argument made by Boris the most?
(1) Between 2000 and 2015, 75% of the investors who invested in startups made more money than the best performing mutual fund
(2) In Europe small investors prefer a large payout after a 5 years gestation period than small guaranteed incomes every year
(3) Crowdfunding companies never audit the startups for their legitimacy
(4) Following the SEC ruling, a lot of people closed their 401K retirement accounts because of the prospect of investing in startups
(5) In last 5 years at least 35% of the startups were profitable with predictable revenue estimates
What's the best way to determine the best Option?
OA D
Which of the following if true supports the argument made by Boris the most?
(1) Between 2000 and 2015, 75% of the investors who invested in startups made more money than the best performing mutual fund
(2) In Europe small investors prefer a large payout after a 5 years gestation period than small guaranteed incomes every year
(3) Crowdfunding companies never audit the startups for their legitimacy
(4) Following the SEC ruling, a lot of people closed their 401K retirement accounts because of the prospect of investing in startups
(5) In last 5 years at least 35% of the startups were profitable with predictable revenue estimates
What's the best way to determine the best Option?
OA D
