In this video, Professor Pablo Foncillas reviews how technology IPOs increasingly result in a worse evolution for the investor who comes to them. Because?
Today many companies make the jump to the stock market after having raised millions and millions. So much so that there are more than 1,200 unicorns around the world, unlisted companies valued at more than 1 billion.
"In the good old days, if you bought shares in an IPO, you could expect the company to grow a lot afterwards. Now, big returns are often reaped by private investors before the company goes public. So, when it finally does ago, the big profits have already been made," explains the researcher.
What does this mean for the small investor excited about an IPO? The answer, in the video...
