108
votes
Accepted
I bought my first shares in life and they dropped 25% in a very short time. What to do?
What were my mistakes?
Buying individual stocks. Over 80% of all professional fund managers are doing worse than a simple S&P 500. These are people who get 100s of 1000s of dollars per year for ...
- 9,347
63
votes
I bought my first shares in life and they dropped 25% in a very short time. What to do?
I would like to know in retrospect what I and other Coinbase stock buyers did wrong. What are the lessons learned for my future? What were my mistakes?
You bought a meme stock during the manic phase ...
- 77k
48
votes
I bought my first shares in life and they dropped 25% in a very short time. What to do?
You are just starting to learn about investing, so it helps to go over the fundamentals.
Typically when an individual has a small amount of spare cash they will put it into a savings account at a bank....
- 1,464
34
votes
I bought my first shares in life and they dropped 25% in a very short time. What to do?
What are the lessons learned for my future? What were my mistakes? Specific lesson learned about Coinbase?
You bought it because it was in the news. Specifically, you bought it because of favorable ...
23
votes
Why would a company prevent their employees from selling their pre-IPO equity?
One reason for a Private company to restrict the number of shareholders is that is there are additional SEC reporting compliance requirements once you exceed the threshold of 2,000 shareholders / 500 ...
- 2,732
21
votes
Does an IPO mean a company is going public or is already public?
I know IPO means that particular company, regardless of the country,
is offering some quantity of their stocks to the public via stock
exchange.
An IPO is an initial Public offering. They are taking ...
- 145k
20
votes
Accepted
How do companies get money from being listed publicly?
Being listed publicly doesn't get a company any money. Getting the listing is what does it: the company sells new shares in an Initial Public Offering (IPO), the underwriter takes its cut of the ...
- 5,522
20
votes
I bought my first shares in life and they dropped 25% in a very short time. What to do?
One thing you should take from this experience is how much you need to consider your choices of saving instruments. If you are going to invest in shares of a single company then you should assure ...
- 823
17
votes
I bought my first shares in life and they dropped 25% in a very short time. What to do?
Be aware of the sunk cost fallacy. The money you lost is gone and nothing you can do will bring it back. What you do now should be largely independent of that.
Let's say you had the money you have ...
- 361
15
votes
Does an IPO mean a company is going public or is already public?
It's all in the name: Initial Public Offering (IPO). Before that, it's a private company. If an already public company issues more stock, it's called a secondary offering.
- 8,557
12
votes
Accepted
what's the difference between money raised in an ipo and its valuation?
A company generally sells a portion of its ownership in an IPO, with existing investors retaining some ownership. In your example, they believe that the entire company is worth $25MM, so in order to ...
- 142k
11
votes
Why would a company prevent their employees from selling their pre-IPO equity?
Typical IPOs tend to have a lock-up period which prevents insiders (founders, employees, venture capitalists) from selling their shares for some amount of time after the IPO. The waiting period tends ...
- 77k
8
votes
What Happens to Cofounders' Shares when they IPO?
A company typically goes public in order to bring in additional capital.
In an IPO, the company (through its officials) will typically do so by issuing additional shares, and offering to sell those ...
- 4,609
8
votes
Does an IPO mean a company is going public or is already public?
Since you didn't specify a country, I'll answer on the basis of the UK, given that it is a major financial center. Just bear in mind that exact definitions may vary in other jurisdictions.
It is a ...
- 2,523
7
votes
Accepted
Is Volvo a public company?
There are two different companies named "Volvo."
The publicly-traded company with ticker symbol VOLV-B is called Volvo Group, or AB Volvo. They primarily build trucks, buses, and construction ...
- 116k
7
votes
To the employer, is equity more or less expensive than payroll?
It depends.
On one hand, paying you in shares can be almost free for the company. The directors just have to pay for the administration costs of issuing you the shares. If they are paying you shares ...
- 9,392
6
votes
Accepted
What happens on the NYSE during an IPO such that the first trade may be hours after the opening bell?
When a company does an Initial Public Offering it is making its shares available for purchase by members of the public for the first time. There are two markets - the "primary" and the &...
- 5,173
6
votes
Can an IPO be cancelled if not successful?
IPOs are cancelled for a number of reasons:
The company finds a better funding option than an IPO
Other recent IPOs have not done well and weaker sisters are pulled
Market nervousnness: The market is ...
- 77k
6
votes
I bought my first shares in life and they dropped 25% in a very short time. What to do?
You should sell and take your losses because you don't yet know what you are doing.
Imagine that you were twelve years old and the family was not home. You borrowed the car keys, took the other car, ...
- 4,277
6
votes
I bought my first shares in life and they dropped 25% in a very short time. What to do?
There's already plenty of answers, but I'll try to help you with the analysis part. How to understand and accept the results. And how to make decisions in the future.
Now my loss at 25%
It's ok for ...
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5
votes
How do companies get money from being listed publicly?
The common approach to an IPO is for the company to hire an investment banker (IB) who will underwrite the shares (sell the stock to the public). There may be an associated underwriting syndicate.
...
- 77k
5
votes
How to buy an IPO?
Institutional investors typically get the lion's share of an IPO allocation.
On the retail side, generally you need an account with a broker that is part of the underwriting syndicate. Good IPOs ...
- 77k
5
votes
Accepted
Why do some services list an IPO date that is well after historical price data you can find elsewhere?
The Minnesota Mining and Manufacturing Company was established in 1902 as a private company. It first raised public funds around 1903 but had a limited shareholder base. By around 1929, it was ...
- 3,934
5
votes
How is initial stock price (IPO) of a stock determined
Who determines company value at IPO?
The Owners based on the advice from Lead Bankers and other Independent auditors who would determine the value of the company at the time of listing. At times ...
- 57.2k
5
votes
Why would a company prevent their employees from selling their pre-IPO equity?
Some companies may not want their shares to be widely distributed
Consider a small, family owned corporation. One of the part owners needs cash now (for example, due to a divorce settlement). ...
- 50.8k
5
votes
Accepted
Does the owner of a company effectively "give up" a portion of his company on IPO?
I’m effectively “giving up” that chunk of the pie because the money raised through an IPO goes to the company
This is true, which is why an IPO is a method of raising capital for the company to use. ...
- 7,926
4
votes
Selling shares after company does IPO
If the company does an IPO and offers 25% of the company (2,500,000 shares) and gets $10/share, how would the ex-employee / co-founder that owns 100,000 shares sell those shares for $10/share?
It all ...
- 57.2k
4
votes
Accepted
What does it mean for issuing corporations to "crank out expensive shares when markets are frothy ... and issue debt when markets are cheap"?
crank out expensive shares when markets are frothy
Corporations go public (sell their shares for the first time) in market conditions that have a lot of liquidity (a lot of people buying shares) and ...
- 20.2k
4
votes
Can an IPO be cancelled if not successful?
Although I gave Bob Baerker's answer a vote I should add that in general the large IPOs that people hear about (and all in some "western" countries thanks to legislation and market rules) are backed ...
- 9,082
4
votes
Accepted
Can I raise money in an IPO of my house?
No, it is not possible.
An Initial Public Offering (IPO) is the process in which a privately-held corporation becomes a publicly-held corporation and gets listed on a stock exchange. Your house is ...
- 116k
Only top scored, non community-wiki answers of a minimum length are eligible