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January 24, 2013, 07:42:15 PM |
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Huge amount of risk for likely very little profit (or potentially a loss).
Say the return on the asset is 10% a year. Lets ignore the exchange fees, bank fees, wire fee, lawyer fees, etc. Lets also ignore the tax implications on the holding company, the potential for ebezzlement, gross mismanagement, etc.
In USD terms the asset produces a 10% return, however (hypothetically) the BTC/USD exchange rate rises 20%. In BTC terms the value of the shares will decline 20% and the dividend paid out over the year will only be 10%, resulting in a net loss for investors compared to simply holding BTC.
Add to it the illegaility of issuing unregistered securities (in the US and most other "first world" nations), the risk of the operating disappearing, and the normal business failure risk and it starts looking like a lot of risk for not much return.
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