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Well, they aren't shares. You're buying essentially a promise from Republic that they will pay you back what the shares are worth when any liquidity event happe
by NoahZuniga 1y ago
Well, they aren't shares. You're buying essentially a promise from Republic that they will pay you back what the shares are worth when any liquidity event happens (ie an IPO, or a new round of funding). You have a risk that Republic doesn't have enough money to cover this value (because they don't promise to actually have those shares).
- msgodel 1y agoSo it's a purchase agreement (ie a forward/future.) It's not that weird, people trade equity futures all the time. Not that I'm defending them, doing that with a company that hasn't IPO'd yet is kind of insane although maybe they're hedging with DXYZ or some kind of private equity.
- NoahZuniga 1y agoYes but potentially naked. Most likely they are selling the risk to institutional investors. See also: https://www.bloomberg.com/opinion/newsletters/2025-06-26/anyone-can-sell-you-spacex-stock https://www.bloomberg.com/opinion/newsletters/2025-06-26/any...