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Or the possibility of being profitable and paying dividends to owners like companies have done for centuries before now.
by benmanns 11y ago
Or the possibility of being profitable and paying dividends to owners like companies have done for centuries before now.
- maneesh 11y agowhat do you mean??
- ethanbond 11y agoIt's possible to simply pay your shareholders out of your profits based on their stake. I have no clue why people think IPOs are the only way to go liquid.
- tryitnow 11y agoIf a company is financially mature enough to pay dividends then it's mature enough to go public. And going public does enhance your value - ceteris paribus. When we talk about "liquidity" we're talking about the ability to sell your assets, not the ability to derive a cash income (dividend) from it. And a share in a public company is almost always going to be more liquid than a share in a private company.
- ethanbond 11y agoAh, good points. Thanks for the clarifications!