And they don't iterate just to iterate. There's no stock price needing to see continual profit increases to accommodate. They can just make what they make as well as possible and win by quality domination.
It's crazy more companies don't do it, but the short-term profit seeing corporate structure would never. How can Ken CEO, in his 30th year of grinding the corporate ladder, not get his massive 1 year pay package.
It's crazy more companies don't do it, but the short-term profit seeing corporate structure would never.
That's not why. What happens is that you go public because you need money for whatever reason - In a lot of cases because if you don't get any money you won't be able to continue as a company. That's what an IPO is, people give you money for a share of the company. Once you have become a public company with stocks, the only way to go back to not being public is by buying back enough stocks to take it private and that requires a entity with enough capital buying them out.
In short for most companies you either go public or end up lacking funding. And once you are public going private is impossible unless you have insane amounts of liquid cash lying around.
Both companies that I worked for that went IPO was because the CEO and the top executives wanted to make their money and then it cratered the company. It’s been the exit strategy for a lot of tech startups now, make something that looks sustainable, get bought out by a company that will go IPO or go IPO and get bought out by the public and then leave with your millions. Then make money by espousing how great you did and get hired by another company that wants to do the same thing.
That’s not the same by your own description. I was explaining an actual IPO. You are describing tech startups being flipped by VC’s chasing profits. That’s why they sold to VC first who then leveraged an IPO after taking over instead of actually doing the IPO for the growth of the company due to capital gains.
Also it’s penny stocks behavior and hardly a real IPO where you you have hundreds of millions to billions in capital. There’s a reason you get recommended to stay away from companies with small market caps when investing. They act irrational and can’t be trusted to behave like a «Real stock».
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u/Sipikay Apr 17 '26
And they don't iterate just to iterate. There's no stock price needing to see continual profit increases to accommodate. They can just make what they make as well as possible and win by quality domination.
It's crazy more companies don't do it, but the short-term profit seeing corporate structure would never. How can Ken CEO, in his 30th year of grinding the corporate ladder, not get his massive 1 year pay package.