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>What's really needed is a way some group of insiders in a company can transfer shares among themselves or outsiders. This would probably take a big change in s
by maerF0x0 9y ago
>What's really needed is a way some group of insiders in a company can transfer shares among themselves or outsiders. This would probably take a big change in securities laws to create rules around how unaudited equities could be traded.
Most option/stock agreements give the company right of refusal and they can block sales
>They don't grant stock, they simply pay cash (bonuses) and if employees want to buy in, it's their money
Doesnt work for private companies, there's no market to buy them in
> Maybe the solution is for companies to become public earlier and have investors operate
I've recently been thinking about the ramifications of more and more of our economy being privately traded. It means that many groups of people are unable to use that slice of the economy to back things like retirement funds. Also can technically lead to a run on equity where folks are trying to save but are just competing over the same limited pool of assets. Articles like [1] are indicating that the number of IPOs per year are dwindling. Maybe a law that says companies valued over $THRESHOLD must be public?
[1]: http://fortune.com/2017/01/20/public-companies-ipo-financial-markets/ http://fortune.com/2017/01/20/public-companies-ipo-financial...
- kelnos 9y ago>> They don't grant stock, they simply pay cash (bonuses) and if employees want to buy in, it's their money > Doesnt work for private companies, there's no market to buy them in Personally I'd like to see more employee profit-sharing arrangements. Difficult for a lot of companies though that run at a loss for years.