Why are companies not going public anymore?

[Jason Voorhees]

Let's have a discussion about this. Why do you think that is? Why don't we have IPOs no more This is the burning question in the buisness world rn

The Public Stock Market Isn’t Enough Anymore

The sharp division between public and private securities was a major bulwark of financial regulation from the New Deal in the 1930s to the end of the 20th century.

www.advisorperspectives.com

 

[Jason Voorhees]

@BigBallsLarry @Shahnamehgymmaxx @Swarthy Knight

 

[Notcel]

Because theres no reason to, itll just devalue the company

 

[avenox]

idk what the fuck this means sounds boring tho

 

[Notcel]

why arent foids going nudist in public anymore?

 

[Notcel]

idk what the fuck this means sounds boring tho

A public company means anyone can buy shares and its pretty much open to scrutiny ect, but more potential investors

A private one doesnt have to share everything since they arent public and have a handful of investors

At least I think so? I learned watching succession

 

[Jason Voorhees]

Because theres no reason to, itll just devalue the company

I personally think it's because regulatory and compliance reasons. The regulations these days are quite strict and rigid and these days. Startups especially Tech startups can raise massive amounts of private capital through venture capital , private equity, and even late-stage funding rounds. Just look at Stripe, SpaceX, and Canva. They raised billions privately.

 

[Jason Voorhees]

@FaceandBBC @buddhistking @Orka @imontheloose

 

[Notcel]

I personally think it's because regulatory and compliance reasons. The regulations these days are quite strict and rigid and these days. Startups especially Tech startups can raise massive amounts of private capital through venture capital , private equity, and even late-stage funding rounds. Just look at Stripe, SpaceX, and Canva. They raised billions privately.

I think its an array or reasons tbf, not every company is going to be like spaceX

 

[BigBallsLarry]

@BigBallsLarry @Shahnamehgymmaxx @Swarthy Knight

Let's have a discussion about this. Why do you think that is? Why don't we have IPOs no more This is the burning question among in the buisness world rn

The Public Stock Market Isn’t Enough Anymore

The sharp division between public and private securities was a major bulwark of financial regulation from the New Deal in the 1930s to the end of the 20th century.

www.advisorperspectives.com

no clue.. I'm way too unintelligent for this.

I'm guessing there's just more upsides in private markets than public ones, atleast that would be the simple anwser

 

[Jason Voorhees]

@LXR @childishkillah @Foreverbrad @Seth Walsh

 

[LXR]

Scale. Most sectors are filled to the brim with mega players who can flood the market with low priced products/services. If there is no price regulation, new players are hesitant to go big. China has pretty much the opposite case, since even in the automotive sector they have boatloads of companies, not to mention the dozens of companies in other sectors pumping out low priced goods. Too much of that and you have a deflationary pressure which leads to wage downgrowth spiral. Most economies want people to spend so this deflationary pressure aint good. The companies who do go public basically pass the test of medium term reliability.

 

[greycel]

A private one doesnt have to share everything since they arent public and have a handful of investors

Maybe the ones that cross that threshold range where they can think about going public, get hunted by a small number of huge sharks that'll provide sufficient funding

 

[Jason Voorhees]

Scale. Most sectors are filled to the brim with mega players who can flood the market with low priced products/services. If there is no price regulation, new players are hesitant to go big. China has pretty much the opposite case, since even in the automotive sector they have boatloads of companies, not to mention the dozens of companies in other sectors pumping out low priced goods. Too much of that and you have a deflationary pressure which leads to wage downgrowth spiral. Most economies want people to spend so this deflationary pressure aint good. The companies who do go public basically pass the test of medium term reliability.

I think this applies more to private equity has been erased. The same market dynamics that make IPOs risky hyper competition, saturated make it much harder for private equity firms to generate strong returns. PE thrives on buying undervalued companies, restructuring them and selling them for profi but when margins are squeezed by mega players flooding the market with low priced goods there's less room to maneuver.

 

[INCEST]

Dude saw s reel about it and decided to make a thread

 

[Jason Voorhees]

Dude saw s reel about it and decided to make a thread

Which reel? I read the article in OP and decided to make the thread

 

[INCEST]

Which reel? I read the article in OP and decided to make the thread

It's been a trendy topic for the past week more companies are going private than public

 

[FaceandBBC]

I’m too low is for these topics ngl. But I’ve been hearing more companies are starting to go private lately.

 

[Jason Voorhees]

Bump