GettyLet's say you read an article about a private company that's growing fast and seems headed for an IPO. If that actually occurred, you would be able to sell those Slack shares on the day of the IPO and earn an attractive return on your investment. As Rodriques said, "There are 300 private companies worth over $1 billion for a total potential market capitalization of over $1 trillion. As Rodriques said, "In an IPO, the only ones who can ride the first day pop are favored clients of the investment banks handling the IPO. They get shares at the IPO price and can sell after the shares rise on that first day.

Source: Forbes April 23, 2019 17:45 UTC