Makes me wish average joe could buy spacex stock. Willing investors shouldnt have to be elite or accredited. Just believers and supporters of a better future.
A company like SpaceX can raise all the money they need from a small number of like minded investors. It saves them the hassle of dealing with thousands of shareholders with their own risk tolerances, investment goals, etc.
"In a hot IPO, when many investors are clamoring to get shares, many of those who do get the newly issued shares will flip it—immediately sell it in the open market for instant profits. The investment bank must, by law, sell the new shares at the offering price regardless of demand. Because of the demand for the new issues, they have to be allocated, and usually it's the biggest clients of the investment bankers who get the issue—small investors almost never get to participate"
It's not designed to prevent 'ordinary' people from sharing in investment profits, it's designed to protect the public purse from having to support millions of people that lost their savings due to unwise investments.
If it's the latter, then there are probably far more creative ways you could help their situation than contributing a few thousand dollars.
I suspect that the failure mode would be that it would inhibit the US government's ability to continue to borrow at such rates.
The FED (more or less) sets the interest rates that the US government has to pay; though if they tried to buy everything, we would see inflation. I suspect the actual failure mode is a different one: real wealth is limited by productivity. If the government is buying all the stocks, we have just shifted ownership around, but don't actually increase productivity. Productivity might even drop, because the government is probably not a good activist shareholder.
For real estate, there's a decent argument to be made that the government should buy it all, and lease it out for a few decades at a time to the highest bidder.
No they don't have more rights. There is nothing preventing you from creating your own private company and sell equities only to poor people.
It's like people having a party and not inviting you. You can be frustrated about it, but please don't start whining about them violating your rights or anything. Just as people have the right not to invite you to their daughter's birthday party, they have the right not to do business with you.
Doing things in private association is a right everybody has, regardless of wealth.
That's not actually true, which is what the people upthread were referring too. It's not that companies simply don't elect to sell equity to poor people, they aren't actually allowed to in most circumstances.
The bigger challenge is that most private companies you've heard of won't even consider taking your money unless you can put in a lot more than any poor person would realistically be able to.