When ride-sharing app Lyft went public with an Initial Public Offering (IPO) March 28, 2019 , the story was probably supposed to follow the same script as other tech unicorns (think Facebook and Etsy).
For these companies, the IPO meant a big cash raise and the debut of stocks that would surge in value. Facebook raised over $16 billion its first day and is currently trading around $190 a share. Etsy opened at $16 and nearly doubled the first day.
The IPO, the first time publicly traded stocks are offered for sale, can be a time of hope and celebration. Founders and early investors are hoping to make money, and individual investors have the opportunity to finally buy a share of a company they’re passionate about.Read more