Perhaps if the name were changed from “promoter” to “entrepreneur,” things would be different. Entrepreneurs, after all, are glorified by the same journalists who have no qualms about vilifying those dreaded promoters. It’s not that easy, of course. Changing the name might confound those eminent journalists, but it would not solve the problems that lead to a venture capital market’s image problems.
The latest in the list of crusaders to fearlessly uncover the shortcomings of the world’s most successful venture capital market, the Vancouver Stock Exchange, is the American television show PrimeTime Live. Not surprisingly, it ignored the successes of the VSE’s mining stock promoters and zeroed in on some pretty Mickey Mouse promotions of industrial stocks.
The problem is that a venture capital market is, by definition, risky. Such a market attracts the scam artists. The best protection is, and always has been, making people aware of the risks when dealing with venture capital.
No one likes to see unwitting investors defrauded. No one condones criminals who steal their money. The VSE has made efforts to establish and maintain standards of investor protection, but it cannot be held responsible for every con-man that sells shares in a VSE-listed company.
The VSE must be vigilant in maintaining its regulations, but the best protection for investors is still education. Notwithstanding those eminent journalists’ pious pleas in defence of the unsuspecting public, anyone who backs a company marketing hairdryers that cure baldness should know that there is a high degree of risk involved.
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