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An IPO is a sale of stock. When selling any product there may be a guaranteed audience (e.g.: institutional investors) but groupon (and Facebook) both have the
by nirvana 14y ago
An IPO is a sale of stock. When selling any product there may be a guaranteed audience (e.g.: institutional investors) but groupon (and Facebook) both have the advantage that millions of regular consumers are aware of them.
Thus, the average mom in illinois is far more likely to buy Groupon or FB than JDS-Uniphase or Applied Materials.
- koeselitz 14y agoI am by no means an expert on financial markets, but my layman's observation is that the internet seems to have changed the whole equation dramatically. In 1980, it would have been almost completely impossible for a new-ish company a few years old to have almost a billion customers. But now it's possible, and moreover it's possible to do that without any of those 'customers' having bought anything at all. I imagine that makes the whole game much more volatile.