korrents

korrents · piece

Customers Love Free Stuff … But That’s Not Your Problem

Bill Gurley · 3 Jun 2021

Read the piece on abovethecrowd.com ↗

2 korrents from this piece ↓

Bill Gurley did not write this page.

Every claim below was made in this piece, quoted word for word and numbered in the order the piece makes them, so you can read it there rather than take our word for it. The sentence above each quote is our reading of the claim, not their wording. Each quote was checked against a stored copy of the page at build time; where the two differ, the quote is the fact.

  1. Our reading

    An IPO first-day pop is a wealth transfer from the company's previous owners to the investors who are allocated shares.

    Their wordsMake no mistake about it, an IPO "pop" is expressly a wealth transfer. Those that are allocated shares have definitive and explicit monetary gain within a 24 hour period of receiving an allocation.

  2. Our reading

    Hot IPOs are intentionally underpriced, and the first-day gains go to the investment banks' best clients, who repay the banks with more business.

    Their words"Hot IPOs" are intentionally underpriced, and then the one-day gains are craftily handed to the very best customers of the investment banks. They return the favor by doing more banking business with said banks, and some of the windfall-money comes right back to the bank via other channels.

Keep reading