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It's widely discussed in the industry. I like the Matt Levine hypothesis titled "Private markets are the new public markets", briefly stated: that for a while t
by sbierwagen 4y ago
It's widely discussed in the industry. I like the Matt Levine hypothesis titled "Private markets are the new public markets", briefly stated: that for a while there was a lot more money available for private companies than there used to be, thanks to ZIRP and megafunds like Softbank VF, and also more regulations and disclosures imposed on public companies, which on net makes it more attractive to stay private and not go public https://www.bloomberg.com/news/newsletters/2020-08-05/money-stuff-public-markets-don-t-matter-like-they-used-to https://www.bloomberg.com/news/newsletters/2020-08-05/money-...
- jerryjerryjerry 4y agoVery informative, thanks for sharing. I guess one of the assumptions behind this is the overall economy is good so the private companies can raise funding easily without going public. Emm but on a second thought, it shouldn't matter when economy is good as companies can always raise funding easily no matter from private equality or public, vice versa, companies may find challenging to raise money when economy is downturn no matter from private or public. So, maybe what you mentioned are the main reasons.
- urthor 4y agoThe cynical would assume firms financials the hyper-efficient public markets would mock prefer to swindle uneducated private investors.