Re:Airbnb’s Stunning IPO
by tyre on Friday December 11, 2020 @02:57PM
(#25390144)
AirBnB is the loser; people who bought at the IPO price are the winners.
Let's say a company IPOs by selling 1,000 shares at $1/share. An investor buys them all. Opening bell rings and demand let's that investor sell shares at $2/share.
So the company sold 1,000 shares for half of what people were willing to pay. The investor bought shares at half the price they could sell them for.
Let's say a company IPOs by selling 1,000 shares at $1/share. An investor buys them all. Opening bell rings and demand let's that investor sell shares at $2/share.
So the company sold 1,000 shares for half of what people were willing to pay. The investor bought shares at half the price they could sell them for.