Investing in a company before its public offering does not guarantee direct shareholder status. The structure of the investment determines what an investor actually holds: direct trades can deliver actual company shares, while fund investments provide a stake in the fund itself rather than the underlying company.
Additionally, a company's IPO does not automatically grant investors the ability to cash out their positions. Liquidity constraints may persist post-listing depending on the specific terms of the pre-IPO investment vehicle.
Pre-IPO Investment Structures: Direct Shares vs. Fund Stakes and Liquidity Constraints
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