Thomas2024@feddit.org to Technology@lemmy.worldEnglish · 2 days agoThe Algorithm That Detected a $610 Billion Fraud: How Machine Intelligence Exposed the AI Industry’s Circular Financing Schemesubstack.comexternal-linkmessage-square96linkfedilinkarrow-up1495arrow-down123
arrow-up1472arrow-down1external-linkThe Algorithm That Detected a $610 Billion Fraud: How Machine Intelligence Exposed the AI Industry’s Circular Financing Schemesubstack.comThomas2024@feddit.org to Technology@lemmy.worldEnglish · 2 days agomessage-square96linkfedilink
minus-squareCroquette@sh.itjust.workslinkfedilinkEnglisharrow-up4·1 day agoBecause higher stock value means more collateral for debt. You’d be surprised on how much debt is used in even small companies.
minus-squarectrl_alt_esc@lemmy.mllinkfedilinkEnglisharrow-up2·1 day agoI’m aware, usually investments are not financed (primarily) with debt though.
minus-squareCroquette@sh.itjust.workslinkfedilinkEnglisharrow-up1·15 hours agoHaving the capabilities to take on debt helps to garner investments. You can do a joint venture, take on a bit of debt but get more money of it. And we’ve seen many mega corpos finance their venture throught debt (see Uber business model). So I’d say that it was true in the past, but corpos are getting bolder.
Because higher stock value means more collateral for debt.
You’d be surprised on how much debt is used in even small companies.
I’m aware, usually investments are not financed (primarily) with debt though.
Having the capabilities to take on debt helps to garner investments.
You can do a joint venture, take on a bit of debt but get more money of it.
And we’ve seen many mega corpos finance their venture throught debt (see Uber business model).
So I’d say that it was true in the past, but corpos are getting bolder.