How can a company who has not produced a single good or service be publicly traded? (Looking at you Lordstown)

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How can a company who has not produced a single good or service be publicly traded? (Looking at you Lordstown)

In: Economics
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I just started a business with a revolutionary product and a revolutionary plan. No we haven’t sold anything yet. We haven’t opened any stores yet. This is the time to get in on ground floor before things take off. Do you want to invest and make a billion dollars with me? Yes or no?

They can be publicly traded the same way any other company can be. They offer a portion of the company for sale via an IPO. They produce documents showing their current financials, projected financials, risks associated with investing in them, etc. And some investors are willing to take on those risk and buy stock.

Some investors want to see a track record of products that sell profitably, others see a good idea and take a risk hoping they’ll be in on the ground floor of something that could be huge.

While its unconventional to go public before selling a product, building cars is a capital intensive business so having access to that additional source of capital can help ensure they are able to bring their vehicles to market and scale in a way that’ll be profitable sooner than later.

Politicians like rich people

Rich people like money but hate being held accountable for the actions they took to acquire money