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This is the real note - if the company was truly valuable, they wouldn't IPO, they'd get slurped up by someone big. Modern IPOs are mainly dumping on retail an
by bombcar 11mo ago
This is the real note - if the company was truly valuable, they wouldn't IPO, they'd get slurped up by someone big.
Modern IPOs are mainly dumping on retail and index investors.
- antiloper 11mo agoIndex investors aren't exposed to IPOs, since the common indexes (SPX etc) don't include IPOs (and if you invest in a YOLO index that does, that's on you). Also: > The US led a sharp rebound, driven by a surge in IPO filings and strong post-listing returns following the Federal Reserve’s rate cut. https://www.ey.com/en_us/insights/ipo/trends https://www.ey.com/en_us/insights/ipo/trends
- outside1234 11mo agoVTI and VT, two of the largest index funds, DO invest in unprofitable companies. And for the rest (SP 500 etc), these companies are going to fake profits using some sort of financial engineering to be included.
- DarmokJalad1701 11mo agoWhat index fund is buying into IPOs ? The S&P 420?
- andrew_lettuce 11mo agoThis isn't really true. IPOs provide access to much more money in a very short time frame. They also allow parties involved to make huge coin before, during and immediately after the process.