3 ms·
You get to turn pieces of paper which say "I own x% of TWTR" into pieces of paper which say "I own $y". A lot of people are happy to make that trade, especially
by pachydermic 13y ago
You get to turn pieces of paper which say "I own x% of TWTR" into pieces of paper which say "I own $y". A lot of people are happy to make that trade, especially if they don't think their ownership of the company is worth the amount of money that people are willing to pay for it.
As for the people who actually just work at Twitter, or who run Twitter? Well, you certainly get a lot more money to work with so long as your stock price doesn't collapse. You no longer have to go lobby certain individuals for money as much as you used to. Sure, you have to focus on making profits now, but that was always kind of the point, right? That doesn't mean you have to be short-sighted. Just look at a company like Amazon for an example of how a patient company can still command a high stock price and respect even when they're not pumping out huge profits.
Also, the vast majority of small businesses are abject failures. Most economic growth occurs through the activity of massive corporations (from the business side of things).
At least, that's my understanding. Feel free to point out if I'm full of shit, please.
- alphaBetaGamma 13y agoActual, a lot of economic activity comes from small businesses: about half the US GDP is generated from companies with less than 500 employees. http://en.wikipedia.org/wiki/Small_business#Contribution_to_the_economy http://en.wikipedia.org/wiki/Small_business#Contribution_to_...
- pachydermic 13y agoInteresting - although it's worth pointing out that it's about half of private sector GDP, not half of US GDP. Also, I'm not sure I'd call a business with over 100 employees "small", but I guess that's the definition they're going with. Here's the full PDF of that source: http://www.sba.gov/sites/default/files/FAQ_Sept_2012.pdf http://www.sba.gov/sites/default/files/FAQ_Sept_2012.pdf Also, while they're a government agency and cite their sources, their job is to advocate for small businesses. Does anyone else have more sources to look at?