Hacker News new | past | comments | ask | show | jobs | submit login

doesn't matter, made $8,100,000,000 in a day

should really start looking at this from the underwriter and issuer perspective to understand the success story here. Retail buys ticker symbols that have been marketed to them. Everyone else dumps. Company made a ton of money and can do whatever it wants with it, they gain nothing from secondary market trading today. VCs, founders and employees can't sell for another 60-90 days, but founders can give themselves big bonuses (and employees too but I mean.. lets be honest)




That's an interesting definition of "made"... assumes the concept of liquidity has no meaning.


> That's an interesting definition of "made"... assumes the concept of liquidity has no meaning.

Thats interesting definition of "literally traded a bunch of shares to underwriters in exchange for $8,100,000,000 and let the underwriters worry about liquidity on the stock exchanges"

Uber has dollars for the shares they sold. Liquidity is not a concern for the party of the transaction I talked about.


...aaaand, Uber (meaning, the owners of Uber pre-IPO) has less ownership in the business afterwards.

Sure, you can argue that the $8.1B is something "real" that the owners of Uber have more of, afterwards.

But you also have to acknowledge that the business of running Uber is also something "real" that the owners of Uber have less of, afterwards, having traded it in a heavily-scrutinized auction.


[flagged]


If you have $1 and I give you $1, but you now only own half of the total of $2. You did not "make" $1.


If you have an asset and someone pays for that asset with a more liquid asset, then you now have that more liquid asset

In this case Uber Inc exchanged illiquid stock for liquid dollars.

Why the semantical debate? Did the use of the word “make” really bother you? What about when there is dilution like in most funding rounds? Shares of equivalent value are literally made. In this IPO Im not sure if that happened with the sale to the underwriters or not.

This kind of asset exchange is what we are all trying to do, exchange one asset for a more liquid one, dollars. They succeeded in doing that to the tune of 8.1 billion usd. The same us dollars that give access to everything in the global financial system via wire transfer.




Registration is open for Startup School 2019. Classes start July 22nd.

Guidelines | FAQ | Support | API | Security | Lists | Bookmarklet | Legal | Apply to YC | Contact

Search: