4 ms·
No offense, but of course IPOs benefit unprofitable companies. The entire point of an IPO is to raise capital to invest back into the company. Why would you e
by diminoten 7y ago
No offense, but of course IPOs benefit unprofitable companies. The entire point of an IPO is to raise capital to invest back into the company. Why would you ever have an IPO if you didn't have a plan for that cash, and why would you have an IPO if you had all the cash you needed?
- scarface74 7y agoBecause the initial investors want to sell their ownership stake.
- diminoten 7y agoThat isn't a valid "business" reason, though.
- scarface74 7y agoThe investors own the business. Why would they be worried about the business and not just what is in their own best interest.
- diminoten 7y agoThey are, but what's in their best interest may be growing the company, not in cashing out immediately.