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IPO's are for large profitable companies who want to add liquidity. There is a huge pool of companies and people that invest billions in companies without an IPO, but there is a lot of laws setup to protect small investors. Anyway, there is a lot of overhead to going public, but if you want liquidity without selling then you need transparency or some company's are going to do huge scams.

PS: There are IM clients that large companies can use so clearly some of what he said was BS.

Well it used to be for raising large amounts of capital (even for unprofitable companies). This is apparently no longer the case.

"but there is a lot of laws setup to protect small investors"

Or to prevent them from investing in private companies without giving a piece to NY bankers? (Not implying you necessarily disagree)

Cray started illegally with small investors who all ended up making a lot of money. In the Midwest too! Good thing Washington isn't allowing that to happen again.

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