couple days ago had a discussion about what an IPO is
I said that IPO’s are now used for early investors to cash out
an “expert” at pretty much everything claimed that IPO’s are used for companies to raise capital to fund investments
It concerns me because either this person clearly doesn’t like to be wrong, is oblivious to what the “markets” are doing and/or just spewing the party line so to speak, instead of the …”hmmm maybe I should look into this” and get edumacted on the subject.
Am I wrong? Are IPO’s now used as a vehicle for early investors to cash out or are IPOs used in the traditional sense to raise capital?