An IPO should not be a stampede for the exits.
In the final days before its May 2012 stock offering, Facebook’s private owners lined up to sell billions of dollars in shares, a negative sign for outside investors. The stock’s post-debut slide ended in September only after Zuckerberg and other large investors promised to hold their shares for a year. The stock hit bottom at $17.50 early that month. Even before Facebook’s IPO fiasco, Twitter’s CEO Dick Costolo was already letting employees know he would not be part of a pump-and-dump stock offering. He told employes not to sell shares early and that they should hold their stock to share in the company’s long-term growth.