Comment on Square stock drops 10%, is now less than IPO priceparentComments−aneesh10yHow did preferences make it worse? Generally, preferred shares convert to common in the event of an IPO, so preferences are discarded.−smileysteve10yWith Square, investors were guaranteed a 20 percent premium on their investment, which would be worth $18.56 a share, meaning Square had to issue more shares to those investors, further devaluing the stock owned by employees.http://www.bloomberg.com/news/articles/2015-11-19/square-emp...
Comments
How did preferences make it worse? Generally, preferred shares convert to common in the event of an IPO, so preferences are discarded.
http://www.bloomberg.com/news/articles/2015-11-19/square-emp...