Matt Levine’s Money Stuff: There’s No Time to Buy Cursor

Cursor

Traditionally the way an initial public offering works is that there is a private company, and it wants to sell its stock to public investors, so it goes out and markets itself to those investors. Along with its bankers and lawyers, the company writes a prospectus explaining its business. The prospectus will contain some standard sections: often a manifesto from the company’s founder setting out its vision and guiding philosophy, an overview of its business and the competitive landscape, a discussion of its financial results. There will be audited historical financial statements going back several years, and risk factors explaining what ...