3 ms·
> What happens if they decide to keep the company private? The shares can still be sold, but it's limited to qualified investors. The primary issue is that ob
by wdr1 10y ago
> What happens if they decide to keep the company private?
The shares can still be sold, but it's limited to qualified investors. The primary issue is that obviously the same information of a public company isn't available & the SEC doesn't want Joe Smith getting scammed by fly-by-night operations.
It's also worth noting that once there are a certain number of shareholders, Uber has to publicly disclose its finances. That's even if they don't raise capitol & are not traded on the SEC.
Historically this was 500 shareholders, but Facebook got an exception from the SEC. I wouldn't be surprised if Uber did too.
- linkregister 10y agoI think you haven't read the article yet. The issue with Uber as opposed to a standard private company is that part of the charter prohibits employees from selling shares on secondary markets or to second party investors. The only viable exit for the employees to exercise their options is for an IPO.