101-404: Snoo may refer to: Snoo, the mascot of the website Reddit The Snoo , drummer otherwise known as Tré Cool Snoo Wilson (1948–2013), English playwright, screenwriter and director Laura De Snoo (born 1962), American discus thrower Topics referred to by the same term [REDACTED] This disambiguation page lists articles associated with
202-484: A Black candidate". Michael Seibel , then-CEO of Y Combinator, was subsequently named to the board. On December 13, 2020, Reddit announced it had acquired short-form video social platform Dubsmash , hiring its entire team, with the intention of integrating its video creation tools into Reddit. On March 5, 2021, Reddit announced that it had appointed Drew Vollero, who has worked at Snapchat 's parent company Snap (SNAP), as its first Chief Financial Officer weeks after
303-580: A better result. In addition to the extensive international evidence that auctions have not been popular for IPOs, there is no U.S. evidence to indicate that the Dutch auction fares any better than the traditional IPO in an unwelcoming market environment. A Dutch auction IPO by WhiteGlove Health, Inc., announced in May 2011 was postponed in September of that year, after several failed attempts to price. An article in
404-906: A brainstorming session to pitch another startup, the idea was created for what Graham called the "front page of the Internet". For this idea, Huffman and Ohanian were accepted in Y Combinator's first class. Supported by the funding from Y Combinator, Huffman coded the site in Common Lisp and together with Ohanian launched Reddit in June 2005. Embarrassed by an empty-looking site, the founders created hundreds of fake users for their posts to make it look more populated. The team expanded to include Christopher Slowe in November 2005. Between November 2005 and January 2006, Reddit merged with Aaron Swartz 's company Infogami, and Swartz became an equal owner of
505-685: A common foundation named Baseplate. It was originally implemented in Python, but since 2019, parts of it have been reimplemented in Go for better performance. Reddit also runs its services through Kubernetes and uses Spinnaker for continuous delivery . In early 2009, Reddit started using jQuery . In 2017, Reddit announced it adopted TypeScript for its UI redesign. Reddit's search function has had many iterations and currently uses Lucidworks Fusion to implementation. In 2010, Reddit released its first mobile web interface for easier reading and navigating
606-455: A company is listed, it is able to issue additional common shares in a number of different ways, one of which is the follow-on offering . This method provides capital for various corporate purposes through the issuance of equity (see stock dilution ) without incurring any debt. This ability to quickly raise potentially large amounts of capital from the marketplace is a key reason many companies seek to go public. An IPO accords several benefits to
707-421: A firm's stock of patents mitigates this effect. A Dutch auction allows shares of an initial public offering to be allocated based only on price aggressiveness, with all successful bidders paying the same price per share. One version of the Dutch auction is OpenIPO , which is based on an auction system designed by economist William Vickrey . This auction method ranks bids from highest to lowest, then accepts
808-433: A funding round led by Sam Altman and including investors Marc Andreessen , Peter Thiel , Ron Conway , Snoop Dogg , and Jared Leto . Their investment valued the company at $ 500 million at the time. In July 2017, Reddit raised $ 200 million for a $ 1.8 billion valuation, with Advance Publications remaining the majority stakeholder. In February 2019, a $ 300 million funding round led by Tencent brought
909-498: A given subreddit were rolled out in 2018. Reddit Talk was announced in April 2021 as a competitor to Clubhouse . Reddit Talk lets subreddit moderators start audio meeting rooms that mimic Clubhouse in design. In 2022, Reddit Talk was updated to support recording audio rooms and work on the web version of Reddit. A desktop app is reportedly slated for a late February release. Reddit Public Access Network , commonly known as RPAN ,
1010-428: A group formed to organize future protests. Yishan Wong joined Reddit as CEO in 2012. Wong resigned from Reddit in 2014, citing disagreements about his proposal to move the company's offices from San Francisco to nearby Daly City , but also the "stressful and draining" nature of the position. Ohanian credited Wong with the company's newfound success as its user base grew from 35 million to 174 million. Wong oversaw
1111-465: A lecture by programmer-entrepreneur Paul Graham in Boston, Massachusetts , during their spring break from University of Virginia . After speaking with Huffman and Ohanian following the lecture, Graham invited the two to apply to his startup incubator Y Combinator . Their initial idea, My Mobile Menu, was unsuccessful, and was intended to allow users to order food by SMS text messaging . During
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#17327731201101212-514: A major redesign of its website in April 2018. Huffman said new users were turned off from Reddit because it had looked like a "dystopian Craigslist". Reddit also instituted several technological improvements, such as a new tool that allows users to hide posts, comments, and private messages from selected redditors in an attempt to curb online harassment , and new content guidelines. These new content guidelines were aimed at banning content inciting violence and quarantining offensive material. Slowe,
1313-458: A natural language processing company. In September 2022, Reddit acquired Spiketrap for an undisclosed sum. In April 2023, Fidelity , the lead investor in Reddit's funding round in 2021, devalued its investment in Reddit by 41% cumulatively. It was revealed in a monthly disclosure that Fidelity valued its stake at $ 16.6 million, down from its initial investment of $ 28.2 million which had valued
1414-667: A new image uploading tool, a move that shifted away from the uploading service Imgur that had been the de facto service. Users still can upload images to Reddit using Imgur. Reddit's in-house video uploading service for desktop and mobile launched in 2017. Previously, users had to use third-party video uploading services, which Reddit acknowledged was time-consuming for users. Reddit released its "spoiler tags" feature in January 2017. The feature warns users of potential spoilers in posts and pixelates preview images. Reddit unveiled changes to its public front page, called r/popular, in 2017;
1515-573: A new revenue stream for the business that did not rely on banner ads. On September 6, 2011, Reddit became operationally independent of Condé Nast, operating as a separate subsidiary of its parent company, Advance Publications. Reddit and other websites participated in a 12-hour sitewide blackout on January 18, 2012, in protest of the Stop Online Piracy Act . In May 2012, Reddit joined the Internet Defense League ,
1616-500: A partnership with Google in a deal worth about $ 60 million per year, to license its real-time user content to train Google's AI model. The partnership also lets Reddit get access to Google's "Vertex AI" service which would help improve search results on Reddit. In March 2024 it was announced that Reddit would target a valuation of up to $ 6.4 billion in its U.S. IPO. The platform intends to sell 22 million class A common shares at
1717-407: A personalized Snoo (known as a "snoovatar"), and a Reddit premium trophy that can be displayed on the user's profile. Reddit Gold was renamed to Reddit Premium in 2018. In addition to gold coins, users were able to gift silver and platinum coins to other users as rewards for quality content. On the site, redditors commemorate their "cake day" once a year, on the anniversary of the day their account
1818-467: A preliminary prospectus, known as a red herring prospectus , during the initial quiet period. The red herring prospectus is so named because of a bold red warning statement printed on its front cover. The warning states that the offering information is incomplete, and may be changed. The actual wording can vary, although most roughly follow the format exhibited on the Facebook IPO red herring. During
1919-486: A price between $ 31 and $ 34 alongside some of its investors, looking to raise up to $ 748 million. Reddit's initial public offering opened on March 20, 2024, at $ 34 per share and a $ 6.4 billion valuation. They went public the next day on the New York Stock Exchange at $ 47 per share and rose to $ 50.44 at market close on its first day of trading, reaching a market cap of $ 9.5 billion. On May 16, 2024 it
2020-428: A total of 1.2 million) as of July 2018 . Subreddit names begin with "r/"; for instance, " r/science " is a community devoted to discussing scientific publications, while "r/gaming" is a community devoted to discussing video games, and "r/worldnews" is for posting news articles from around the world. In a 2014 interview with Memeburn , Erik Martin, then the general manager of Reddit, remarked that their "approach
2121-517: A way to increase revenue for the platform. Later, a five-day testing period began. During the testing period, streaming was for a select group of users, allowing 30 minutes of streaming per person and 100 slots. On July 1, 2020, RPAN Studio was released, an application that allows users to broadcast live from desktop computers. RPAN Studio has been built on top of OBS , an open-source streaming and recording program. On January 28, 2021, Reddit permanently increased streaming times to three hours. RPAN
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#17327731201102222-487: Is theglobe.com IPO which helped fuel the IPO "mania" of the late 1990s internet era. Underwritten by Bear Stearns on 13 November 1998, the IPO was priced at $ 9 per share. The share price quickly increased 1,000% on the opening day of trading, to a high of $ 97. Selling pressure from institutional flipping eventually drove the stock back down, and it closed the day at $ 63. Although the company did raise about $ 30 million from
2323-536: Is $ 10 billion. Reddit has received praise for many of its features, such as the ability to create several subreddits for niche communities, being a platform for raising publicity for numerous causes, and has grown to be one of the most visited websites on the Internet . It has also received criticism for spreading misinformation . The idea and initial development of Reddit originated with college roommates Steve Huffman and Alexis Ohanian in 2005, who attended
2424-416: Is a website comprising user-generated content —including photos, videos, links, and text-based posts—and discussions of this content in what is essentially a bulletin board system . The name "Reddit" is a play-on-words with the phrase "read it", i.e., "I read it on Reddit." According to Reddit, in 2019, there were approximately 430 million monthly users, who are known as "redditors". The site's content
2525-417: Is an American social news aggregation , content rating , and forum social network. Registered users (commonly referred to as "Redditors") submit content to the site such as links, text posts, images, and videos, which are then voted up or down ("upvoted" or "downvoted") by other members. Posts are organized by subject into user-created boards called "subreddits". Submissions with more upvotes appear towards
2626-545: Is an expensive process, IPOs also typically involve one or more law firms with major practices in securities law , such as the Magic Circle firms of London and the white-shoe firms of New York City. Financial historians Richard Sylla and Robert E. Wright have shown that before 1860 most early U.S. corporations sold shares in themselves directly to the public without the aid of intermediaries like investment banks. The direct public offering (DPO), as they term it,
2727-433: Is divided into categories or communities known on-site as "subreddits", of which there are more than 138,000 active communities. As a network of communities, Reddit's core content consists of posts from its users. Users can comment on others' posts to continue the conversation. A key feature to Reddit is that users can cast positive or negative votes, called upvotes and downvotes respectively, for each post and comment on
2828-451: Is low enough to stimulate interest in the stock but high enough to raise an adequate amount of capital for the company. When pricing an IPO, underwriters use a variety of key performance indicators and non-GAAP measures. The process of determining an optimal price usually involves the underwriters ("syndicate") arranging share purchase commitments from leading institutional investors. Some researchers (Friesen & Swift, 2009) believe that
2929-465: Is possible that the financial incentives of the advisor and client may not be aligned. The issuer usually allows the underwriters an option to increase the size of the offering by up to 15% under a specific circumstance known as the greenshoe or overallotment option. This option is always exercised when the offering is considered a "hot" issue, by virtue of being oversubscribed. In the US, clients are given
3030-399: Is to generate additional interest in the stock and a rapid rise in share price when it first becomes publicly traded (known as an "IPO pop"). Flipping , or quickly selling shares for a profit , can lead to significant gains for investors who were allocated shares of the IPO at the offering price. However, underpricing an IPO results in lost potential capital for the issuer. One extreme example
3131-654: Is to give the community moderators or curators as much control as possible so that they can shape and cultivate the type of communities they want". Subreddits often use themed variants of Reddit's alien mascot, Snoo , in the visual styling of their communities. Reddit Premium (formerly Reddit Gold) is a premium membership that allows users to view the site ad-free. Until 2023, subscribers could also use coins to award posts or comments they valued, generally due to humorous or high-quality content. Reddit Premium unlocks several features not accessible to regular users, such as comment highlighting, exclusive subreddits such as r/lounge,
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3232-452: Is usually underwritten by a " syndicate " of investment banks, the largest of which take the position of "lead underwriter". Upon selling the shares, the underwriters retain a portion of the proceeds as their fee. This fee is called an underwriting spread . The spread is calculated as a discount from the price of the shares sold (called the gross spread ). Components of an underwriting spread in an initial public offering (IPO) typically include
3333-506: The publicani were legal bodies independent of their members whose ownership was divided into shares, or partes . There is evidence that these shares were sold to public investors and traded in a type of over-the-counter market in the Forum , near the Temple of Castor and Pollux . The shares fluctuated in value, encouraging the activity of speculators, or quaestors . Mere evidence remains of
3434-1073: The CEO of Reddit ( Steve Huffman ). Subreddits are overseen by moderators, Reddit users who earn the title by creating a subreddit or being promoted by a current moderator. Reddit users may also request to moderate a sub that has no moderators or very inactive ones in r/redditrequest. These requests are reviewed by the Reddit admins. Moderators are volunteers who manage their communities, set and enforce community-specific rules, remove posts and comments that violate these rules, and generally work to keep discussions in their subreddit on topic. Admins, by contrast, are paid to work for Reddit. Reddit also releases transparency reports annually which have information like how many posts have been taken down by moderators and for what reason. It also details information about requests law enforcement agencies have made for information about users or to take down content. In 2020, Reddit removed 6% of posts made on their platform (approx. 233 million). More than 99% of removals were marked as spam;
3535-507: The Dutch auction is still a little used method in U.S. public offerings, although there have been hundreds of auction IPOs in other countries. In determining the success or failure of a Dutch auction, one must consider competing objectives. If the objective is to reduce risk, a traditional IPO may be more effective because the underwriter manages the process, rather than leaving the outcome in part to random chance in terms of who chooses to bid or what strategy each bidder chooses to follow. From
3636-407: The Dutch auction system for its initial public offering. Traditional U.S. investment banks have shown resistance to the idea of using an auction process to engage in public securities offerings. The auction method allows for equal access to the allocation of shares and eliminates the favorable treatment accorded important clients by the underwriters in conventional IPOs. In the face of this resistance,
3737-473: The IPO are restricted from issuing any earnings forecasts or research reports for the company. When the quiet period is over, generally the underwriters will initiate research coverage on the firm. A three-day waiting period exists for any member that has acted as a manager or co-manager in a secondary offering. Not all IPOs are eligible for delivery settlement through the DTC system , which would then either require
3838-509: The IPO, shares are traded freely in the open market at what is known as the free float. Stock exchanges stipulate a minimum free float both in absolute terms (the total value as determined by the share price multiplied by the number of shares sold to the public) and as a proportion of the total share capital (i.e., the number of shares sold to the public divided by the total shares outstanding). Although IPO offers many benefits, there are also significant costs involved, chiefly those associated with
3939-500: The Lisp community, the change was justified by the efficiency and clarity Python provided for the project. This initiative not only influenced the technical evolution of Reddit but also contributed to the broader web development community by inspiring other frameworks and remaining a significant part of Reddit's history. (In 2020, Ohanian claimed that rather than Swartz being a co-founder, the correct description would be that Swartz's company
4040-627: The Vault. Richard Lawler of The Verge described them as " non-fungible tokens (NFTs) that are available for purchase in the Reddit Avatar Builder". In 2017, Reddit developed its own real-time chat software for the site. While some established subreddits have used third-party software to chat about their communities, the company built chat functions that it hopes will become an integral part of Reddit. Individual chat rooms were rolled out in 2017 and community chat rooms for members of
4141-504: The Wall Street Journal cited the reasons as "broader stock-market volatility and uncertainty about the global economy have made investors wary of investing in new stocks". Under American securities law, there are two-time windows commonly referred to as "quiet periods" during an IPO's history. The first and the one linked above is the period of time following the filing of the company's S-1 but before SEC staff declare
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4242-460: The activity that redditors would recognize that helped define Reddit. These include subreddits "WTF", "funny", and "AskReddit". Reddit rolled out its multireddit feature, the site's biggest change to its front page in years, in 2013. With the multireddits, users see top stories from a collection of subreddits. In 2015, Reddit enabled embedding and as a result users could share Reddit content on other sites. In 2016, Reddit began hosting images using
4343-408: The assumption of independent private values (that the value of IPO shares to each bidder is entirely independent of their value to others, even though the shares will shortly be traded on the aftermarket). Theory that incorporates assumptions more appropriate to IPOs does not find that sealed bid auctions are an effective form of price discovery, although possibly some modified form of auction might give
4444-422: The capital to its public investors. Those investors must endure the unpredictable nature of the open market to price and trade their shares. After the IPO, when shares are traded in the market, money passes between public investors. For early private investors who choose to sell shares as part of the IPO process, the IPO represents an opportunity to monetize their investment. After the IPO, once shares are traded in
4545-403: The change creates a front page free of potentially adult-oriented content for unregistered users. IPO An initial public offering ( IPO ) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also to retail (individual) investors. An IPO is typically underwritten by one or more investment banks , who also arrange for
4646-424: The code and libraries written for Reddit were freely available on GitHub , with the exception of the anti-spam/cheating portions. In a September 2017 announcement, the company stated that "we've been doing a bad job of keeping our open-source product repos up to date", partially because "open-source makes it hard for us to develop some features 'in the clear'... without leaking our plans too far in advance", prompting
4747-407: The company (primary offering) as well as to any early private investors who opt to sell all or a portion of their holdings (secondary offerings) as part of the larger IPO. An IPO, therefore, allows a company to tap into a wide pool of potential investors to provide itself with capital for future growth, repayment of the debt, or working capital. A company selling common shares is never required to repay
4848-697: The company as it raised $ 50 million in funding and spun off as an independent company. Also during this time, Reddit began accepting the digital currency Bitcoin for its Reddit Gold subscription service through a partnership with bitcoin payment processor Coinbase in February 2013. Ellen Pao replaced Wong as interim CEO in 2014 and resigned in 2015 amid a user revolt over the firing of a popular Reddit employee. During her tenure, Reddit initiated an anti-harassment policy, banned involuntary sexualization, and banned several forums that focused on bigoted content or harassment of individuals. After five years away from
4949-533: The company at $ 10 billion. This was followed by an announcement in June 2023 of plans to layoff 5% of Reddit's workforce and to reduce the number of planned hires for the year. In June 2023, BlackCat hacker gang claimed responsibility for a February 2023 breach of Reddit's systems. On their data leak site, they claimed that they stole 80 GB of compressed data and demanded a $ 4.5 million ransom from Reddit. This attack did not involve data encryption like typical ransomware campaigns. In February 2024, Reddit announced
5050-462: The company's first employee, rejoined Reddit in 2017 as chief technology officer. Reddit's largest round of funding came in 2017 when the company raised $ 200 million and was valued at $ 1.8 billion. The funding supported Reddit's site redesign and video efforts. On June 5, 2020, Ohanian resigned as a member of the board in response to the George Floyd protests and requested to be replaced "by
5151-464: The company's valuation to $ 3 billion. In August 2021, a $ 700 million funding round led by Fidelity Investments raised that valuation to over $ 10 billion. The company then reportedly filed for an IPO in December 2021 with a valuation of $ 15 billion. Reddit debuted on the stock market on the morning of March 21, 2024 with the ticker symbol RDDT. The current—July 2024—market cap
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#17327731201105252-450: The company, Ohanian and Huffman returned to leadership roles at Reddit: Ohanian became the full-time executive chairman in November 2014 following Wong's resignation, while Pao's departure on July 10, 2015, led to Huffman's return as the company's chief executive. After Huffman rejoined Reddit as CEO, he launched Reddit's iOS and Android apps, improved Reddit's mobile website, and created A/B testing infrastructure. The company launched
5353-442: The concession, while the member of the syndicate who provided the shares to that broker-dealer would retain the underwriting fee. Usually, the managing/lead underwriter, also known as the bookrunner , typically the underwriter selling the largest proportions of the IPO, takes the highest portion of the gross spread , up to 8% in some cases. Multinational IPOs may have many syndicates to deal with differing legal requirements in both
5454-455: The data pipeline. Reddit uses Redis and its implementation of HyperLogLog to cache approximate page views with an underlying Apache Cassandra cluster for persistence. For general caching of queries and memoization , Reddit uses memcached behind Facebook's memcached router, mcrouter. In 2017, it had almost 3.3 terabytes of memory on 54 EC2 instances dedicated to caching split across different pools. Services at Reddit are structured around
5555-784: The decision to archive its public GitHub repos. As of November 10, 2009 , Reddit decommissioned its servers which it owned and migrated to Amazon Web Services , using EC2 for application services and S3 for storage. Reddit uses PostgreSQL as its primary datastore. As part of an effort to be more data-driven, Reddit built a data analytics pipeline on top of Apache Kafka and Hive as its data warehouse . It uses Amazon's Elastic MapReduce to run Hadoop workloads across Hive and stores results in S3, eventually putting data in Amazon RDS for visualization purposes. It also uses HAProxy for load balancing and Jenkins and Apache Pig in
5656-451: The final IPO prospectus is for the issuer to retain one of the major financial "printers", who print (and today, also electronically file with the SEC ) the registration statement on Form S-1. Typically, preparation of the final prospectus is actually performed at the printer, wherein one of their multiple conference rooms the issuer, issuer's counsel (attorneys), underwriter's counsel (attorneys),
5757-468: The following (on a per-share basis): Manager's fee, Underwriting fee—earned by members of the syndicate, and the Concession—earned by the broker-dealer selling the shares. The Manager would be entitled to the entire underwriting spread. A member of the syndicate is entitled to the underwriting fee and the concession. A broker-dealer who is not a member of the syndicate but sells shares would receive only
5858-421: The highest bids that allow all shares to be sold, with all winning bidders paying the same price. It is similar to the model used to auction Treasury bills , notes, and bonds since the 1990s. Before this, Treasury bills were auctioned through a discriminatory or pay-what-you-bid auction, in which the various winning bidders each paid the price (or yield) they bid, and thus the various winning bidders did not all pay
5959-458: The issued shares, the stock may fall in value on the first day of trading. If so, the stock may lose its marketability and hence even more of its value. This could result in losses for investors, many of whom being the most favored clients of the underwriters. Perhaps the best-known example of this is the Facebook IPO in 2012. Underwriters, therefore, take many factors into consideration when pricing an IPO, and attempt to reach an offering price that
6060-425: The issuer's domestic market and other regions. For example, an issuer based in the E.U. may be represented by the major selling syndicate in its domestic market, Europe, in addition to separate group corporations or selling them for US/Canada and Asia. Usually, the lead underwriter in the head selling group is also the lead bank in the other selling groups. Because of the wide array of legal requirements and because it
6161-668: The lead underwriter(s), and the issuer's accountants/auditors make final edits and proofreading, concluding with the filing of the final prospectus by the financial printer with the Securities and Exchange Commission. Before legal actions initiated by New York Attorney General Eliot Spitzer , which later became known as the Global Settlement enforcement agreement, some large investment firms had initiated favorable research coverage of companies in an effort to aid corporate finance departments and retail divisions engaged in
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#17327731201106262-426: The listing regime. Planning is crucial to a successful IPO. One book suggests the following seven planning steps: IPOs generally involve one or more investment banks known as " underwriters ". The company offering its shares, called the "issuer", enters into a contract with a lead underwriter to sell its shares to the public. The underwriter then approaches investors with offers to sell those shares. A large IPO
6363-583: The marketing of new issues. The central issue in that enforcement agreement had been judged in court previously. It involved the conflict of interest between the investment banking and analysis departments of ten of the largest investment firms in the United States. The investment firms involved in the settlement had all engaged in actions and practices that had allowed the inappropriate influence of their research analysts by their investment bankers seeking lucrative fees. A typical violation addressed by
6464-427: The offering, it is estimated that with the level of demand for the offering and the volume of trading that took place they might have left upwards of $ 200 million on the table. The danger of overpricing is also an important consideration. If a stock is offered to the public at a higher price than the market will pay, the underwriters may have trouble meeting their commitments to sell shares. Even if they sell all of
6565-405: The open market, investors holding large blocks of shares can either sell those shares piecemeal in the open market or sell a large block of shares directly to the public, at a fixed price , through a secondary market offering . This type of offering is not dilutive since no new shares are being created. Stock prices can change dramatically during a company's first days in the public market. Once
6666-401: The physical delivery of the stock certificates to the clearing agent bank's custodian or a delivery versus payment (DVP) arrangement with the selling group firm. "Stag profit" is a situation in the stock market before and immediately after a company's initial public offering (or any new issue of shares). A "stag" is a party or individual who subscribes to the new issue expecting the price of
6767-686: The previously private company: There are several disadvantages to completing an initial public offering: IPO procedures are governed by different laws in different countries. In the United States, IPOs are regulated by the United States Securities and Exchange Commission under the Securities Act of 1933 . In the United Kingdom, the UK Listing Authority reviews and approves prospectuses and operates
6868-545: The prices for which partes were sold, the nature of initial public offerings, or a description of stock market behavior. Publicani lost favor with the fall of the Republic and the rise of the Empire . In the United States, the first IPO was the public offering of Bank of North America around 1783. When a company becomes publicly listed, the money paid by the investing public for the newly issued shares goes directly to
6969-465: The process such as banking and legal fees, and the ongoing requirement to disclose important and sometimes sensitive information. Details of the proposed offering are disclosed to potential purchasers in the form of a lengthy document known as a prospectus . Most companies undertake an IPO with the assistance of an investment banking firm acting in the capacity of an underwriter. Underwriters provide several services, including help with correctly assessing
7070-522: The quiet period, the shares cannot be offered for sale. Brokers can, however, take indications of interest from their clients. At the time of the stock launch, after the Registration Statement has become effective, indications of interest can be converted to buy orders, at the discretion of the buyer. Sales can only be made through a final prospectus cleared by the Securities and Exchange Commission. The final step in preparing and filing
7171-413: The registration statement effective. During this time, issuers, company insiders, analysts, and other parties are legally restricted in their ability to discuss or promote the upcoming IPO (U.S. Securities and Exchange Commission, 2005). The other "quiet period" refers to a period of 10 calendar days following an IPO's first day of public trading. During this time, insiders and any underwriters involved in
7272-544: The remainder made up of a mix of other offensive content. Around 131 million posts were removed by the automated moderator and the rest were taken down manually. It is estimated that Reddit's moderators do a total of 466 hours of work every day, which totals up to $ 3.4 million in unpaid work each year. This roughly equates to 2.8% of the company's annual revenue. Subreddits (officially called communities) are user-created areas of interest where discussions on Reddit are organized. There are about 138,000 active subreddits (among
7373-430: The resulting parent company, Not A Bug. Swartz went on to help rewrite the software running Reddit using web.py, a web framework he developed. The passage from Aaron Swartz's blog post "Rewriting Reddit" reveals that the switch from Lisp to Python, specifically using the web.py framework developed by Swartz, was driven by a desire for simplicity, maintainability, and performance. Despite facing skepticism and critique from
7474-549: The same price. Both discriminatory and uniform price or "Dutch" auctions have been used for IPOs in many countries, although only uniform price auctions have been used so far in the US. Large IPO auctions include Japan Tobacco, Singapore Telecom, BAA Plc and Google (ordered by size of proceeds). A variation of the Dutch auction has been used to take a number of U.S. companies public including Morningstar , Interactive Brokers Group , Overstock.com , Ravenswood Winery, Clean Energy Fuels, and Boston Beer Company . In 2004, Google used
7575-476: The settlement was the case of CSFB and Salomon Smith Barney , which were alleged to have engaged in the inappropriate spinning of "hot" IPOs and issued fraudulent research reports in violation of various sections within the Securities Exchange Act of 1934 . A company planning an IPO typically appoints a lead manager, known as a bookrunner , to help it arrive at an appropriate price at which
7676-414: The shares should be offered. There are two primary ways in which the price of an IPO can be determined. Either the company, with the help of its lead managers, fixes a price ("fixed price method"), or the price can be determined through analysis of confidential investor demand data compiled by the bookrunner (" book building "). Historically, many IPOs have been underpriced. The effect of underpricing an IPO
7777-498: The shares to be listed on one or more stock exchanges . Through this process, colloquially known as floating , or going public , a privately held company is transformed into a public company . Initial public offerings can be used to raise new equity capital for companies, to monetize the investments of private shareholders such as company founders or private equity investors, and to enable easy trading of existing holdings or future capital raising by becoming publicly traded. After
7878-472: The site was thrust into the spotlight due to its role in the GameStop trading frenzy. Vollero's appointment spurred speculation of an initial public offering, a move that senior leaders have considered publicly. In December 2021, Reddit revealed that it had confidentially filed for an initial public offering with the U.S. Securities and Exchange Commission . In June 2022, Reddit acquired MeaningCloud ,
7979-542: The site's numerous subreddits are visible on the front page to those who browse the site without an account. By default for those users, the front page will display the subreddit r/popular, featuring top-ranked posts across all of Reddit, excluding not-safe-for-work communities and others that are most commonly filtered out by users (even if they are safe for work). The subreddit r/all originally did not filter topics, but as of 2021 it does not include not-safe-for-work content. Registered users who subscribe to subreddits see
8080-451: The site. The number of upvotes or downvotes determines the posts' visibility on the site, so the most popular content is displayed to the most people. Users can also earn "karma" for their posts and comments, a status that reflects their standing within the community and their contributions to Reddit. Posts are sometimes automatically archived after six months, meaning they can no longer be commented or voted on. The most popular posts from
8181-419: The stock to rise immediately upon the start of trading. Thus, stag profit is the financial gain accumulated by the party or individual resulting from the value of the shares rising. This term is more popular in the United Kingdom than in the United States. In the US, such investors are usually called flippers, because they get shares in the offering and then immediately turn around " flipping " or selling them on
8282-484: The title Snoo . If an internal link led you here, you may wish to change the link to point directly to the intended article. Retrieved from " https://en.wikipedia.org/w/index.php?title=Snoo&oldid=1043745572 " Category : Disambiguation pages Hidden categories: Short description is different from Wikidata All article disambiguation pages All disambiguation pages Reddit Reddit ( / ˈ r ɛ d ɪ t / )
8383-436: The top content from the subreddits to which they subscribe on their personal front pages. Additionally, some subreddits have a karma and account age requirement to discourage bots and spammers from posting. Front-page rank—for both the general front page and for individual subreddits—is determined by a combination of factors, including the age of the submission, positive ("upvoted") to negative ("downvoted") feedback ratio, and
8484-493: The top of their subreddit and, if they receive enough upvotes, ultimately on the site's front page. Reddit administrators moderate the communities. Moderation is also conducted by community-specific moderators, who are unpaid volunteers. It is operated by Reddit, Inc. , based in San Francisco . As of August 2024, Reddit is the 9th most-visited website in the world . According to data provided by Similarweb , 51.75% of
8585-453: The topics that they engaged with, and allows the user to view it. On July 7, 2022, Reddit announced ' blockchain -backed Collectible Avatars', customizable avatars which are available on the subreddit r/CollectibleAvatars for purchase separate from Reddit Premium. The avatars were created by independent artists who post work on other subreddits, and who receive a portion of the profits. They use Reddit's Polygon blockchain-powered digital wallet
8686-442: The total vote-count. Registering an account with Reddit is free and requires an email address. In addition to commenting and voting, registered users can also create their own subreddit on a topic of their choosing. In Reddit style, usernames begin with "u/". Noteworthy redditors include u/Poem_for_your_sprog, who responds to messages across Reddit in verse, u/Shitty_Watercolour who posts paintings in response to posts, and u/spez,
8787-447: The underpricing of IPOs is less a deliberate act on the part of issuers and/or underwriters, and more the result of an over-reaction on the part of investors (Friesen & Swift, 2009). One potential method for determining to underprice is through the use of IPO underpricing algorithms . Other researchers have discovered that firms with higher revenues from licensing-based technology commercialization exhibit greater IPO underpricing, while
8888-399: The underwriters. A licensed securities salesperson ( Registered Representative in the US and Canada) selling shares of a public offering to his clients is paid a portion of the selling concession (the fee paid by the issuer to the underwriter) rather than by his client. In some situations, when the IPO is not a "hot" issue (undersubscribed), and where the salesperson is the client's advisor, it
8989-528: The value of shares (share price) and establishing a public market for shares (initial sale). Alternative methods such as the Dutch auction have also been explored and applied for several IPOs. The earliest form of a company which issued public shares was the case of the publicani during the Roman Republic , although this claim is not shared by all modern scholars. Like modern joint-stock companies,
9090-405: The viewpoint of the investor, the Dutch auction allows everyone equal access. Moreover, some forms of the Dutch auction allow the underwriter to be more active in coordinating bids and even communicating general auction trends to some bidders during the bidding period. Some have also argued that a uniform price auction is more effective at price discovery , although the theory behind this is based on
9191-903: The website on touch screen devices. For several years, redditors relied on third-party apps to access Reddit on mobile devices. In October 2014, Reddit acquired one of them, Alien Blue, which became the official iOS Reddit app. Reddit removed Alien Blue and released its official application, Reddit: The Official App, on Google Play and the iOS App Store in April 2016. The company released an app for Reddit's question-and-answer Ask Me Anything subreddit in 2014. The app allowed users to see active Ask Me Anythings, receive notifications, ask questions and vote. The site has undergone several products and design changes since it originally launched in 2005. When it initially launched, there were no comments or subreddits. Comments were added in 2005 and interest-based groups (called 'subreddits') were introduced in 2008. Allowing users to create subreddits has led to much of
9292-512: The website traffic comes from the United States, followed by the United Kingdom at 7.15% and Canada at 7.09%. Reddit was founded by University of Virginia roommates Steve Huffman and Alexis Ohanian , as well as Aaron Swartz , in 2005. Condé Nast Publications acquired the site in October 2006. In 2011, Reddit became an independent subsidiary of Condé Nast's parent company, Advance Publications . In October 2014, Reddit raised $ 50 million in
9393-474: Was "responsible for keeping the site going" under Condé Nast's ownership. Martin facilitated the purchase of RedditGifts and led charity initiatives. Reddit launched two different ways of advertising on the site in 2009. The company launched sponsored content and a self-serve ads platform that year. Reddit launched its Reddit Gold benefits program in July 2010, which offered new features to editors and created
9494-412: Was a live streaming service run by Reddit. Viewers interacted with streams by upvoting or downvoting, chatting, and giving paid awards. During the off-air hours, 24/7 streaming was possible to the dedicated subreddits, but with limited slots and capabilities. On August 19, 2019, Reddit announced RPAN. It was said to be in testing, but they were experimenting with making it a permanent program, as well as
9595-402: Was acquired by Reddit 6 months after he and Huffman had started.) Huffman and Ohanian sold Reddit to Condé Nast Publications , owner of Wired , on October 31, 2006, for a reported $ 10 million to $ 20 million and the team moved to San Francisco . In November 2006, Swartz blogged complaining about the new corporate environment, criticizing its level of productivity. In January 2007, Swartz
9696-611: Was announced that Reddit and OpenAI reached a deal that will allow OpenAI access to the Reddit API to train its models, while Reddit will receive certain AI tools for moderators and users. Reddit's share price increased by 42% after reporting its third quarter results in October 2024, where it recorded its first quarterly profit. The surge was also attributed in part to increases in revenue from AI content licensing and advertising, and reaching close to 100 million active users. Reddit
9797-521: Was created. Cake day adds an icon of a small slice of cake next to the user's name for 24 hours. In August 2021, the company introduced a TikTok -like short-form video feature for iOS that lets users rapidly swipe through a feed of short video content. In December 2021, the company introduced a Spotify Wrapped -like feature called Reddit Recap that recaps various statistics from January 1 to November 30 about each individual user, such as how much time they spent on Reddit, which communities they joined, and
9898-417: Was fired for undisclosed reasons. Huffman and Ohanian left Reddit in 2009. Huffman went on to co-found Hipmunk with Adam Goldstein , and later recruited Ohanian and Slowe to the new company. After Huffman and Ohanian left Reddit, Erik Martin, who joined the company as a community manager in 2008 and later became general manager in 2011, played a role in Reddit's growth. VentureBeat noted that Martin
9999-513: Was not done by auction but rather at a share price set by the issuing corporation. In this sense, it is the same as the fixed price public offers that were the traditional IPO method in most non-US countries in the early 1990s. The DPO eliminated the agency problem associated with offerings intermediated by investment banks. The sale (allocation and pricing) of shares in an IPO may take several forms. Common methods include: Public offerings are sold to both institutional investors and retail clients of
10100-413: Was officially discontinued on November 15, 2022. In 2019, Reddit tested a new feature that allowed users to tip others. It was only made available for a user named Chris who goes by the alias u/shittymorph , who was known for posting well-written comments, only for them to end with the same copypasta referencing the 1998 Hell in a Cell match between wrestlers The Undertaker and Mankind . Reddit
10201-502: Was originally written in Common Lisp but was rewritten in Python in December 2005 for wider access to code libraries and greater development flexibility. The Python web framework that Swartz developed to run the site, web.py , is available as an open source project. As of November 10, 2009 , Reddit used Pylons as its web framework. Reddit was an open source project from June 18, 2008, until 2017. During that time, all of
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