3 ms·
Have you worked at a company that has gone public? It's a huge day for the company. Seeing the stock dip is a major morale killer, attributes to attrition, and
by mkinsella 6y ago
Have you worked at a company that has gone public? It's a huge day for the company. Seeing the stock dip is a major morale killer, attributes to attrition, and can cause issues with hiring strong talent.
- dannyw 6y agoThis sounds like a communication / internal messaging issue, especially because the financial outcome (end of day share price) is the exact same.
- reducesuffering 6y agoSeriously, how is this still going on when literal billions of $ on the line are being squandered to Wall St. every year in IPO's? Especially from tech co's where generally people should have a bit more critical thinking for the end result.
- vasco 6y agoIt's not the same, the company presumably still owns a lot of it's own stock post IPO, so a stronger share price will be way better for M&A for example, which is one of the many reasons a company may want to become publicly traded.
- ahepp 6y agoThis seems to be assuming the share price ends up at the same place. It's simply a question of whether the IPO should be priced lower or higher.
- vasco 6y agoIf you go by the efficient market hypothesis you would say that. I doubt that a universe where you open at $20 and rise by 100% gives you the same end state for all actors + price as a universe that opens at $200 and crashes by 80%. If you believe everything is priced in all the time I guess it makes sense.
- AmericanChopper 6y agoThe efficient market hypothesis doesn’t predict that everything is priced in all the time. It predicts that you can’t consistently beat the efficiency of market pricing over a long term. It doesn’t predict that short term volatility can’t exist.
- kgwgk 6y agoThe end-of-next-day share price may not be exactly the same, though.