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It's called risk/reward and is fundamental to how investing works

Lenders get a fixed return and, unlike equity holders, do not share in the upside of a successful venture if its valuation increases. In exchange, they get more protections in the event of insolvency. Equity holders take the risk of losing their invested capital, but get all the upside if the venture goes gang busters. What is wrong with that? It's just logical to me.


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