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0 pointsyieldcrv3y ago0 comments

but at least in an IPO the company would get a financing round, and the banks get to manipulate the market with a stabilizing bid indefinitely

direct listings completely rely on retail buyers for liquidity, and even in the frothiest markets that's not enough money in the face of all employees and the company dumping shares immediately

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chimeracoder3y ago

> direct listings completely rely on retail buyers for liquidity, and even in the frothiest markets that's not enough money in the face of all employees and the company dumping shares immediately

IPOs typically have a lockup period, which means that employees will always be selling to retail buyers, whether on Day 1 with a direct listing or Day 90/180/etc. when the IPO lockup expires.

yieldcrvOP3y ago

for confidence games, an IPO is much better.

chimeracoder3y ago

> for confidence games, an IPO is much better.

Better for whom? And how?

It's not clear to me that it makes a difference for employees either way. It's not like the stock price on Day 90-180 are still thinking about what mechanism the company used to go public 3-6 months ago. At that point the stock price is mostly based on the two new 10-Qs that have been filed since then, plus additional current information like market conditions, etc.

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0 pointsyieldcrv3y ago0 comments

but at least in an IPO the company would get a financing round, and the banks get to manipulate the market with a stabilizing bid indefinitely

direct listings completely rely on retail buyers for liquidity, and even in the frothiest markets that's not enough money in the face of all employees and the company dumping shares immediately

0 comments

chimeracoder3y ago

> direct listings completely rely on retail buyers for liquidity, and even in the frothiest markets that's not enough money in the face of all employees and the company dumping shares immediately

IPOs typically have a lockup period, which means that employees will always be selling to retail buyers, whether on Day 1 with a direct listing or Day 90/180/etc. when the IPO lockup expires.

yieldcrvOP3y ago

for confidence games, an IPO is much better.

chimeracoder3y ago

> for confidence games, an IPO is much better.

Better for whom? And how?

1 more reply

j / k navigate · click thread line to collapse