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In all fairness there is a legit service provided by underwriters. Most companies offering IPOs aren't well-known tech companies with an informed market ready t
by boh 6y ago
In all fairness there is a legit service provided by underwriters. Most companies offering IPOs aren't well-known tech companies with an informed market ready to buy. They're more likely totally unknown and lack investor interest. Making a direct sale without underwriter support (who will buy a portion of your offering to act as a market-maker and stabalize the price) can potentially fail to raise the necessary capital. Yes underwriters demand fairly steep fees, but they also take huge risks themselves.
- trident1000 6y agoPeople are idiots. Theyll buy anything pitchbook or no pitchbook. Can also argue that the internet is the pitchbook now which did not exist before.
- perlgeek 6y agoThe traditional IPO will still be available; so companies that feel the need for underwriters can do so, and the very public tech unicorns don't need to anymore. Best of both worlds, no?