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YOU Try Telling The Bank You're Worth A Jillion Zillion Dollars And See What They Say
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How do new, hot tech firms get valuations so high that they're worth more than big, successful, established non-tech companies? Simple: They make the numbers up. No, really, that's exactly how it's done, to impress would-be investors and set a general benchmark for when the IPO eventually happens. They figure they can pump up the numbers and always revise downward later, when people start to catch on to the fact that there's no profit in sight. This economy is fascinating. (Bloomberg)
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