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How would that work? The company doesn't get any money from you - it already sold its shares at the IPO.
by bildung 9y ago
How would that work? The company doesn't get any money from you - it already sold its shares at the IPO.
- thedufer 9y agoWe wouldn't have to call it an Initial Public Offering if companies never sold shares in subsequent Public Offerings. Most trades don't have the company in question on the selling side, but some do, even after the IPO.
- MandieD 9y agoBut the future ease of trading said shares added to the price people were willing to pay for them at the IPO. Plus, for more established companies: the prospect of regular dividends. That's not as much of a thing as it used to be, though.
- charlesdm 9y ago1. It offers owners and/or founders of the company liquidity, which is essentially why they started the company in the first place. Just because you own an amazing company doesn't mean you want to keep your entire net worth in a single stock. 2. I would buy Apple shares if I could sell them at a moments notice. I wouldn't if I couldn't. 3. A liquid investment is generally valued higher than an illiquid one. 4. A higher valuation means the company is able to raise funding from the market at a later stage, by selling additional equity (if required) -- this is relevant for the company.