Social media giant Twitter starts trading following its IPO today. One hopes the lessons of the Facebook IPO debacle are learned. In fact Facebook is now trading $14 above its IPO price, after a very disappointing start. Plus Twitter is choosing a day following a record high on the Dow Industrials index, which is good.
If Twitter does well, its coattails could be substantial in our world. It could help encourage others to pursue a going public strategy, including traditional IPOs, which are slowly seeing a resurgence. Its very visible choice initially to keep its filings invisible under the Jumpstart Our Business Startups Act could push others to do the same. And the social media sector, which took a pause after Facebook’s problems, could also find itself once again the darling of Wall Street.
I’ve had the pleasure of several visits to the New York Stock Exchange recently for various purposes. The national securities exchanges, including Nasdaq, NYSE MKT and the New York Stock Exchange, all hope to help growing companies. I also just shared a panel with the CEO of OTC Markets. They are also committed to standing behind entrepreneurs as they seek capital and push their businesses ahead. Going public is not for every company. But when conditions are right, lots of folks can see their business benefit from a publicly trading stock.
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