True, but sometimes you have a big lump of early employees become liquid at the same time. That’s a not a recurring event, which is important when deciding how viable the business is.

Absolutely agreed, but events like one-off secondaries can somewhat distort the numbers in that they put costs that should be amortized over many in years into a single quarter. You see similar at big cos 6mos after IPO when everything vests.

It does not affect free cash flow or strain the resources of already available to the company.

Stock holders existing and new participate in the success of failure of the company, different from say vendor who needs to be paid no matter what.

it is far worse to be spending 100m in cash to get say 50m in new revenue (if the customers don't stay long enough) as this requires new cash to be infused to keep growing.