I guess it depends how the money from...

I guess it depends how the money from institutions/companies/retail investors invested are spent.

If it's dodgy, most likely it will go like this in my opinion (I could be wrong):
1. Entity A/B/C/D + retail investors invests in ASX listed company (lets say ###) and has shares in it.

2. ASX listed company ### spends money that leads to Entity A/B/C/D or it's subsidiaries/affiliates or director from @@@ earning money through:
- director fees
- business transactions/deals.
- money from retail investors (including more cap raises)

3. The cycle continues until ### goes bankrupt which gives those companies a capital gain tax deductions.

4. Rinse and repeat with a new company using as much money from retail investors or uninformed investors (institutional included).


Had a friend who works for a venture capitalist company overseas which also recently been duped by dodgy listed stock market company and their directors.