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> but how can Goldman's investment banking arm promise anything? Easy: they lie. Why is this so mind-boggling? > This is akin to my bank promising some third
by camelite 9y ago
> but how can Goldman's investment banking arm promise anything?
Easy: they lie. Why is this so mind-boggling?
> This is akin to my bank promising some third party that by Friday afternoon I'll have a certain balance in USD or some specific precious metal in my safe deposit box.
You're just explaining why the company shouldn't have believed Goldman. And I agree they shouldn't. But it appears that they did believe them, for whatever reason. Perhaps it was the Goldman aura. Perhaps it was their top .01% sales staff. Perhaps it was knowledge derived from their client relationships concievably allowing them to choose long-term over short-term investors.
Whatever. But Goldman being skillful liars is not some bizarre left-field theroy.
- tptacek 9y agoWhat does this have to do with Taibbi's article?
- prostoalex 9y agoWhat's the difference between a late-stage private round and a public offering? The shares start floating the day of the public offering. For general public to buy those shares, someone has to sell. To paraphrase Eastern philosophers, if the company goes public, but the daily trading volume for their ticker stays at 0, did it really go public? But who's going to sell? The company no longer can, having sold the initial allocation to IPO subscribers the day prior. The employees or early investors cannot - they have a lock-up period mandated by SEC. Only those who subscribed to the IPO at more or less market prices can sell, so almost by definition a successful IPO with good trading volume involves a lot of flipping. What would be a successful IPO in eToys interviewee's book? An opening bell sound and no activity?