The people buying the stocks are the greater fools and the original owners still succeed as their stock is now trading publicly and they can sell their stocks and make a bundle.

In this case, the investors do get hosed, so not a win-win, unless they sell it to the next greater fool before it collapses. Kinda like bitcoin. One could always sell it to a greater fool, until one can't. And hopefully that ain't you. If it is....suckk-ker...