Why do company manager-owners smile when they ring the stock exchange bell at their IPO?

The reason company manager-owners smile when they ring the stock exchange bell at their Initial Public Offering (IPO) is primarily because it crystallizes the value of their stake in the company. At this pivotal moment, the company's stock begins to trade publicly, and the market assigns a value to the shares based on investor demand and company performance expectations. This marks a significant milestone, as it transforms the private value of their ownership into a market value, allowing owner-managers to see the tangible worth of their investments and efforts.

The excitement surrounding an IPO is often linked to the potential for generating substantial returns on their investment and the opportunity to liquidate some of their holdings in the future. This moment signifies not just a celebration of a new chapter for the company but also the culmination of hard work by the managers, who have now successfully brought their company to the public market, setting the stage for growth and expansion.