> Are there any immediate impacts for a company regarding a price drop after an IPO?
From what I understand, nothing _direct_, but there are a bunch of indirect issues it raises:
- Ability to raise later capital
- Happiness of current investors (who may have board seats)
- Happiness of employees who have stock grants/etc, and may not be making much, if anything...
- Retaining talent and hiring new talent
Finally, I'm not sure, but I wouldn't be surprised if very significant drops can open a company up to increased auditing or attention from the SEC. I don't know what form this would take, and I could be wrong, but if there is something along these lines that could take up company resources or cost money in fines if they are found to have mis-sold some aspect of the company to investors.
From what I understand, nothing _direct_, but there are a bunch of indirect issues it raises:
- Ability to raise later capital
- Happiness of current investors (who may have board seats)
- Happiness of employees who have stock grants/etc, and may not be making much, if anything...
- Retaining talent and hiring new talent
Finally, I'm not sure, but I wouldn't be surprised if very significant drops can open a company up to increased auditing or attention from the SEC. I don't know what form this would take, and I could be wrong, but if there is something along these lines that could take up company resources or cost money in fines if they are found to have mis-sold some aspect of the company to investors.