• lurch (he/him)
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    12 hours ago

    stocks are only sold after the company is up and running. it has nothing to do with building anything. the money raised by the IPO is usually blasted away in top manager fees in the following coupla years.

    • the_wise_wolf@feddit.org
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      11 hours ago

      Early investors geht stocks. And they can even sell them before the company goes public (if it ever does). The IPO or direct listing or whatever process is chosen, brings the stocks to an open exchange. And a company usually issues new stocks during an IPO and can issue new shares at any time.

      The fact that IPOs are overpriced and kinda shady is true, but that’s one of those problems I meant, which are not explicitly due to the existence of stocks.