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What? This is completely wrong. The owners don't completely cash out at the IPO. I don't know exactly how much Zuck ended up selling at the IPO, but after so
by andr3w321 14y ago
What? This is completely wrong. The owners don't completely cash out at the IPO. I don't know exactly how much Zuck ended up selling at the IPO, but after some quick googling I found an article from a couple of weeks ago stating
Zuckerberg, who holds a total of 533.8 million shares, would sell 30.2 million shares in the IPO — garnering about $1.05 billion in cash at the high end of the proposed price range of $28- $35 for the sale of shares.
So in otherwords Zuckerberg is worth $1 billion in cash and has 534 million shares of FB. If FB goes to zero before he sells the rest of his stock on the market, his net worth drops by something like $19 billion.
- glesica 14y agoIt's not completely wrong. I never said the owners cash out entirely. But in terms of the company raising money, the IPO is pretty much it. Perhaps I was a little too loose with my terminology though, to the point of being confusing. Instead of "owner" I should have said "company" in that paragraph.
- andr3w321 14y agoYou said: The owner(s) of the company only gets paid at the IPO. That's the only time he gets money from the stock market (unless and until the company issues more stock later). This is totally false. They get paid anytime they sell stock. They sell some stock at IPO and get paid some then. It's by no means the only time they ever sell stock and definitely not the only time they get paid by the market.
- glesica 14y agoI said many other things as well. The comment wasn't totally false. I corrected/clarified my statements in my reply. Thank you for pointing out the need for clarification.