The Hidden Risk in Many Tech IPOs

As if investors didn’t already have enough to contend with when it comes to the sky-high prices of tech IPOs! Now they’re increasingly dealing with a less obvious, but nonetheless real risk: the growing popularity of dual-class shares. It’s a risk that affects new market debutantes Lyft, Roku, Dropbox and Spotify as well as Slack.

This structure hurts shareholders, but especially smaller individual investors, because it effectively removes the ability of outsiders to create meaningful dissent — entrenching management teams that may be running their business poorly. And that means shareholders aren’t receiving as high a price as they could on their stock.

Read the full article here.

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17 Mar 2020

martinwolf COVID-19 Response

With all the news and concern surrounding COVID-19 and its resultant market impact, we at martinwolf wanted to reach out. First, and above all, to say that we hope...