Yet Another Inequality Catalyst

@abrar-fahim · 2025-10-14 22:24 · Hive Learners
A couple of days ago I posted a piece on the fact that the major companies throughout the world are staying private. Instead of going public like they used to. In it. I described the various obvious problems that any CEO would like to avoid by staying private and some of the obvious reasons which make staying private a better deal than ever. Those were not the whole story. They were more shady reasons as to why a company would like to stay private instead of going public. Along with the things that go wrong in the financial markets do to companies staying private. And I promised that I will talk about those on a different day. So I think I should get it over with and move on. --- ![1000017112.jpg](https://files.peakd.com/file/peakd-hive/abrar-fahim/23wCbc1JiLhe18qd9HEyEdvjVNPPugvLNwLxjRE1os7mF4xuAus1ijP9XbKy3THfZSqbM.jpg) [Source](https://www.freepik.com/free-vector/group-people-holding-crypto-currency-market-concept-flat-cartoon-illustration_21106221.htm#fromView=keyword&page=1&position=1&uuid=2d420710-cab4-4e1e-84e9-9dfcfeaf711f&query=Stock+market) --- Suppose you are a normal investor on a personal level. You have a brokerage account and you buy and sell stocks on Wall Street. You have a knack for seeing potential and different companies and you tend to get into the ground level and ride the stock as it gains value. Then you tend to sell when the company reaches some sort of plateau. Maybe this is the aftermath of some huge product launch. Due to that product the company stock went crazy high and you made a good profit and then you're off the stock and you're on to the next one. Now here's what happens when companies don't go public. Those stocks which you consistently find with good potential, they won't exist in the first place. Let's say Apple. Advanced the iPhone in 2007 and after the huge success of that product, Apple stock went up. A more recent example can be Nvidia. In a. The currently ongoing AI boom Nvidia stock has risen a lot because its gpus are instrumental and getting AI to do better things now. Imagine none of these companies are public and they are privately owned. So those high gains which were available to the masses through the markets would not be available. Instead, they would be available only to those handful of Rich investors who give their private money to these companies, which in turn helps these companies to stay private. And this is the sole reason why there will be fewer people going into the future who have made their fortune from the stock market or made any substantial profit from it. And there will be more people who will be simply earning a lot of money from things like private equity, venture capital, sovereign wealth funds etc. and this only takes the income inequality even further. So things will only get worse.
#hive #hl-blog
Payout: 0.000 HBD
Votes: 49
More interactions (upvote, reblog, reply) coming soon.