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Throwaway account, reporting on the secondary market! Companies will often do everything in their power, including running roughshod over their contractural an

Throwaway account, reporting on the secondary market! Companies will often do everything in their power, including running roughshod over their contractural and legal obligations, to prevent employees from selling stock on the secondary market. If they're not total jerks, they will encourage you to participate in "internal buybacks". Unfortunately, these buybacks are run as a service for investors, presenting them massively undervalued in exchange for loyalty. Regulators have just begun to take interest in the abuse of transfer agency by privately-held companies distributing shares in lieu of compensation. Similar attention should be paid to the information provided to prospective employees at the time of hire, when the decision to accept stock in lieu of cash is made.

mcfunley 11y ago
In my case, * Internal buybacks ("tender offers") were actually all above the current (publicly-listed) stock price. Private valuations can be pretty inflated. I think it's a good idea to take these and diversify. * My company did use a backchannel to stop me from selling privately to one of their investors before the IPO (at roughly double the current market price). So I think the spirit of your comment is right.
ryporter 11y ago
So, are these shares massively overvalued or massively undervalued? It seems like the anti-equity crowd here will never be happy. They want cash when the company offers equity, and equity when the company arranges for an offer of cash.