You could argue that the existing shareholders, who own 90% of the stock are better served in the long run if the stock has positive momentum. The calculation

You could argue that the existing shareholders, who own 90% of the stock are better served in the long run if the stock has positive momentum. The calculation for if it's better to sell the other 90% into a hot market would be: 40% of 10% is only 4%. So if the initial pop has a long term positive impact of 4.4% on the price, then the existing shareholders come out ahead. It's debatable, but I think there are two sides.