4 ms·
Firstly, a good or bad IPO can be remembered for years as part of the reputation of the company. Secondly, yes their stock could grow after the IPO, however th
by lozenge 4y ago
Firstly, a good or bad IPO can be remembered for years as part of the reputation of the company.
Secondly, yes their stock could grow after the IPO, however the stock would be publicly owned at that point so the profit would go to the public shareholders instead of the current holders of the stock (founders, investors, employees).
- elAhmo 4y agoIn the 2nd case, you are assuming everyone cashes out and avoids missing on growth that would happen. If they keep the stock, or just sell partially (which would most likely be the case for many people, given how much money did Stripe raise to cover tax liabilities), they would be a part of the growth. I still think (and I might be wrong) Stripe put themselves in a corner position, and raising 6.5 billion USD after 13 years of operating to cover this cost seems like something that could definitely have been avoided.