An inventor is selling stock in a company to produce as well as market a device which he claims can be plugged into an electrical outlet, as well as then produce more mechanical work than the electrical energy than the device consumes.
(a) Presuming that no nuclear events are involved in the inventor's device, would you buy stock in his company?
(b) A good friend of yours who has no technical background comes to you for technical advice on the invention. How would you explain your position on investing in this company to him?