3 ms·
Better for whom?
by Avicebron 5mo ago
Better for whom?
- SecretDreams 5mo agoThe company. Worse for the investors. It's a classic bagholder play, but it can give the companies a comfortable runway post IPO. Typically, you IPO when your private funding is drying up and/or some of your early lenders want to cash out.
- JumpCrisscross 5mo ago> The company. Worse for the investors It's worse for the new investors. (If it crashes.) It's great for the old investors. They got an opportunity to sell if they wanted. If they didn't, they still own their shares, except in a company that has that IPO cash sitting in its account.
- SecretDreams 5mo agoYes, correct. Although, even for some company folks, if it crashes, they get burned since they typically have blackouts post IPO. Of course, some special souls are excluded from blackouts lol.
- JumpCrisscross 5mo ago> if it crashes, they get burned since they typically have blackouts post IPO In the alternate timeline they would have held shares in a private company. They're still not really getting burned other than getting a tax bill.