The company receives its full funding amount during the IPO, where it sells its shares to institutional investors.
Let's say it sold 1 million shares.
Then, when the shares start trading on the secondary market, where do these shares come from?
Assuming that all investors have a lock-up period, then they cannot sell their shares on the secondary market until maybe 6 months out.
So where do all the shares trading on the secondary market come from?