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Public Corps

M
Marshal Trumm
27 Apr 2012 22:32 Link
Alright, I've noticed something that happens when a state corporation goes public. As soon as a corp goes public, it's value decreases DRAMATICALLY. Maybe I'm a little slow, but can anybody tell me why this is?
A
Andy
27 Apr 2012 23:52 Link
Once it goes public, the value depends on the stock market only.

if shares are offered at IPO and there are no buyers, the price will go down.
If there are buyers it will go up.

with real IPOs it is the same but bankers make sure there are buyers.
M
Marshal Trumm
28 Apr 2012 01:42 Link
Okay. Thank you.
Q
Quetzalcoatl
01 May 2012 09:09 Link
Try issuing less shares, I issue only 2 percent of the shares and experience no decline in value, the reason they go down for you is because you issue 15% all at once and there are not sufficient buyers.