Naive question from someone who knows next to nothing about IPOs:
Why not just divide the shares up amongst the existing shareholders, and just let them sell them normally on the market? Then the company/founders/vcs can just sell shares at whatever pace they want to, at whatever fair market value is.
It seems like the only possible outcome of a single day sale is information asymmetry, which means someone will always get "screwed".
Why not just divide the shares up amongst the existing shareholders, and just let them sell them normally on the market? Then the company/founders/vcs can just sell shares at whatever pace they want to, at whatever fair market value is.
It seems like the only possible outcome of a single day sale is information asymmetry, which means someone will always get "screwed".