That would be the naive mathematical interpretation and how the system would work if engineers designed it. Lawyers designed it, though, and they probably know some tricks to make that not happen.
That would be the naive mathematical interpretation and how the system would work if engineers designed it. Lawyers designed it, though, and they probably know some tricks to make that not happen.
You think engineers never scam?
Not like lawyers, dentists, car salesmen, etc do!
Like what? All the examples people have said are where either
1) the company has Nx preferences, for N >1, in which case the company has essentially failed to fundraise or
2) the company sells for less than they raised, which again, is a polite form of failure.
lets no degrade lawyers more than necessary.
Business people hired lawyers to design means and methods to commit _implicit_ fraud and deceptive practices to improve the value of their capital assets.
Those lawyers then go on to sell this product to others.
I'm sure there's some lawyers out there that are going out there shopping this stuff around, but it's Capitalism and Business thats the active agent, not Lawyers.