← Back to context Comment by Avicebron 15 hours ago Better for whom? 4 comments Avicebron Reply SecretDreams 15 hours ago The 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 15 hours ago > The company. Worse for the investorsIt'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 15 hours ago Yes, 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. 1 reply →
SecretDreams 15 hours ago The 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 15 hours ago > The company. Worse for the investorsIt'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 15 hours ago Yes, 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. 1 reply →
JumpCrisscross 15 hours ago > The company. Worse for the investorsIt'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 15 hours ago Yes, 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. 1 reply →
SecretDreams 15 hours ago Yes, 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. 1 reply →
The 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.
> 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.
Yes, 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.
1 reply →