Downside To An IPO
from the you-no-longer-control-your-shares dept
The latest in Red Herring's evil-behind-the-scenese-of-the-IPO story is about the downside many companies face after the IPO. These can be summed up pretty quickly as "you no longer control your own shares". Of course, that's exactly what it means to take a company public, but apparently some entrepreneurs forgot this when they saw all the green stuff that they, personally, were about to get. So, I find it hard to sympathize with the CEO who complains about the downsides of his IPO: the stock went on a roller coaster ride as institutional investors pumped it up, and brought it back down again leading to pissed off retail investors, nervous customers, and employees with low morale. Yes, that sucks, but that's part of what being a public company is all about - and anyone who takes their company public should be prepared for such possibilities.
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