118
Reddit plans to reserve shares for its big users in IPO, WSJ reports
(www.reuters.com)
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
this post was submitted on 21 Feb 2024
118 points (89.3% liked)
Technology
59438 readers
3767 users here now
This is a most excellent place for technology news and articles.
Our Rules
- Follow the lemmy.world rules.
- Only tech related content.
- Be excellent to each another!
- Mod approved content bots can post up to 10 articles per day.
- Threads asking for personal tech support may be deleted.
- Politics threads may be removed.
- No memes allowed as posts, OK to post as comments.
- Only approved bots from the list below, to ask if your bot can be added please contact us.
- Check for duplicates before posting, duplicates may be removed
Approved Bots
founded 1 year ago
MODERATORS
How is buying at IPO price a “privilege”? I get that options are a privilege, and gifted stocks are, too.
The theory is that the issue price is less than what the stock will be at shortly after IPO. That's why principals get excited about IPOs. You're issued some vested shares and often have the privilege of purchasing more shares at the issue price before launch, then it goes up, you profit.
Of course, sometimes that goes hilariously wrong, see Facebook.