EquityZen’s Post

📈💡 Stock splits are buzzing! Ever wondered what they mean for your investments down under? Dive into our latest blog where we break down everything Australian investors need to know about stock splits, from ASX impacts to strategic insights. #Investing #StockMarket #Australia https://lnkd.in/g_NArqTP

Have you had your eye on a specific stock but it’s just out of your price range? Find out more about stock splitting as a ASX investor.

With many more investors using apps to get into share investing, stock splits provide an opportunity to get exposed to some of the bigger companies whose share price has soared. Like a dividend reinvestment plan, it still pays to analyse the benefits of investing more when a stock split occurs, is the value still there? Have a read of my blog and let me know what you think. #sharesplits #inspiredmoney #shares #investing

Willing the capital markets to open up with this blog post 🤞🤞🤞

Forget IPOs! The Western stock markets are witnessing a surprising reversal. This trend concerns many including Jamie Dimon (CEO of JP Morgan). In 2023, more companies went private than public; even companies that did well post-IPO were going private with PE funds within 2 years - total transaction value being north of $113 bn! This is despite the stock market indices recording highs. Let’s try to decode this phenomenon The stock market allows regular investors (retail investors) like you and me to own a stake in a listed company and grow our investment in tandem with the company’s growth. The company in exchange gets access to funds for growth with prestige and awareness. But there are several cons too: • High reporting costs (regulatory, ESG etc) • Exposure to a lot more variables increases the risk of devaluation External pressure • Short-term >>> long-term; markets reward short-term wins more than long-term goals • More public scrutiny - can lead to shareholder activism What motivates companies to go private besides the above cons and economic uncertainty? (For example - Dell went private from 2013 to 2018) • The leadership can focus on implementing its strategy in the medium term without public scrutiny • If the company’s stock is undervalued intrinsically, it can go private to preserve the value • Investors in private companies won’t be investing with a speculative mindset but with a growth mindset, as the investment is illiquid • With the current dry powder (funds available for investment) swelling to record highs, the companies can tap into multiple sources of relatively safe funds • Helpful in cases where the company’s assets are intangible (source code, patents etc) - which cannot be correctly valued in public markets Now let’s look at why recently IPO’d firms (who do well) would do this • Retail investors may not be able to value the newly IPO’d firms correctly, leading to undervaluation • The IPOs may be priced at a premium, offering significant returns to the previous (exiting) shareholders rather than raising money for growth. Therefore, the IPO is taking money OFF the table • These IPOs may have the wrong investor base, as the presence of hedge funds has increased replacing traditional investors who believed in long-only positions This shift highlights a trade-off: companies gain flexibility, but investors lose access to diversification and growth opportunities. The market's response and regulatory changes remain to be seen. Image: Deal Value Comparision by KPMG #Finance #PrivateEquity #Business #IPO ---------- For more of such content, check out my other write-ups at https://lnkd.in/gZsGDR_8 :)

The latest edition of the IPOX® Week #742 is now available (https://lnkd.in/g56B8xZC). Key highlights include: 📈 IPOX® buoyant as equity rally broadens, IPOX® Bonds surge anew 🌍 IPOX® International and Europe reach multi-year highs 🚀 GINDEX® U.S./International outperform benchmarks 💰 Global IPO activity raises $2.2 billion across accessible markets 🗞️ Significant IPO news including Smithfield Foods' planned $1B U.S. IPO Read the full report for in-depth analysis of the latest trends in the IPO and new listings market: https://lnkd.in/g56B8xZC #IPO #NewListings #Finance #ETF #Investment #FinanceNews #MarketAnalysis

Big Ticket Investors 20% Easing Off Equity Rising/falling demand for stocks is estimated through Brendan Wood’s daily personal debriefs with big cap investors. Approximately 2000 yearly discussions with managers overseeing +/-$60 trillion, estimate quality and demand, stock by stock, across 1400 large cap investment targets. The aggregated findings aim to broadly anticipate the forthcoming net increasing or decreasing demand. https://lnkd.in/gsrxCNud

Big Ticket Investors 20% Easing Off Equity Rising/falling demand for stocks is estimated through Brendan Wood’s daily personal debriefs with big cap investors. Approximately 2000 yearly discussions with managers overseeing +/-$60 trillion, estimate quality and demand, stock by stock, across 1400 large cap investment targets. The aggregated findings aim to broadly anticipate the forthcoming net increasing or decreasing demand. https://lnkd.in/gsrxCNud

Will the public stock market fade into oblivion? No. But, the reality is that the number of public companies have reached a 50-year low as an increasing number of large private companies choose to stay private for the foreseeable future. In Forbes, EquityZen's CEO Atish Davda dives into the trends that are driving this change and what it means for both public and private market investors. Check it out. bit.ly/4eJnZ0O #preipo #ipos #privatemarket #secondarymarket #publiccompany #privatecompany

The latest edition of the IPOX® Week #742 is now available (https://lnkd.in/e65Eu25v). Key highlights include: 📈 IPOX® buoyant as equity rally broadens, IPOX® Bonds surge anew 🌍 IPOX® International and Europe reach multi-year highs 🚀 GINDEX® U.S./International outperform benchmarks 💰 Global IPO activity raises $2.2 billion across accessible markets 🗞️ Significant IPO news including Smithfield Foods' planned $1B U.S. IPO Read the full report for in-depth analysis of the latest trends in the IPO and new listings market: https://lnkd.in/e65Eu25v #IPO #NewListings #Finance #ETF #Investment #FinanceNews #MarketAnalysis