Agreed!
Retail investors are just retail investors, naive investors are just naive investors. The poor will always serve the rich! Don't ever mistakenly think you can be the first to sit at the table and pick up the chopsticks.
SpaceX offering 30% of shares to retail investors: a benefit or a trade-off?
The whole internet is hyping: Musk is kind-hearted, SpaceX is reserving 30% of its IPO shares for retail investors. This narrative is completely wrong from start to finish. It's not the conclusion that's wrong, it's the framework. The essence of IPO allocation: who sets the price, who takes the shares, let's first clarify a basic logic. IPO allocation is essentially a distribution of pricing power. Institutions get shares, obtaining the arbitrage right to "buy at a low price and sell in the secondary market." Retail investors get shares, usually the leftovers after institutions have picked. In US IPO conventions, retail investors only get 5%-10%. Why? Because underwriters need institutions to "discover the price"...
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