RichardKennaway comments on Teachable Rationality Skills - Less Wrong

52 Post author: Eliezer_Yudkowsky 27 May 2011 09:57PM

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Comment author: RichardKennaway 01 June 2011 12:56:50PM 0 points [-]

I am not seeing much of a problem in underpricing for direct sales and allowing a secondary market.

It's just occurred to me that this is the way that IPOs work. A company going public wants its offering to sell out promptly, to get the money it went public to raise. A consensus value is established in subsequent trading, and if the people who bought into the initial offering see their holdings immediately bump up in value, they're happy too.