The term references shares connected to a hypothetical application promising substantial, yet unproven, future growth. This concept mirrors situations where investors speculate on a company’s potential based on innovative ideas or market disruption, even if current financial performance is limited. For instance, a newly-launched social media platform with a unique feature set might attract investor interest despite lacking a track record of profitability.
This type of investment can be important for funding early-stage companies with disruptive potential, allowing them to develop their technology and gain market share. However, it carries a high degree of risk. Historical context shows that many ventures promising revolutionary change ultimately fail to deliver expected returns, leaving investors with significant losses, illustrating the volatility inherent in betting on future, rather than present, value.
