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Joined 1 year ago
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Cake day: April 22nd, 2024

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  • It’s the risk:benefit tradeoff always. Sure you can hold on to all your illiquid stock in a private company with transfer restrictions, but will that pay for a house or even a banana? Does it ever not. The “take a loan for liquidity until you can sell some stock” trick worked for a little bit but companies are wise to that too now, and don’t allow it.

    So people can pick between real money they can spend on stuff (or invest in a slightly less illiquid way) or being paper multimillionaires with no actual liquidity; not a hard choice imho.