4 ms·

so how exactly will the schools be able to sell the stock? trough SecondMarket like FB employees?

• chollida1 16y ago
  I'd imagine that they can get loan's against it. Many high level employee's do this when they can't sell their stock.
  • borism 16y ago
    OMG
  • deleted 16y ago
    [deleted]
  • jonknee 16y ago
    That's really risky. What happens when everyone realizes the valuation is sky high and the $100m in paper turns into $20m liquid?
    • chollida1 16y ago
      Well why would a bank lend you money to buy a house. What happens when everyone realizes the valuation is sky high and the $500,000 house turns into a $100,000 house. On a serious note, most often executives can't get 100% of the value of their stock back in line of credit format. 60% to 75% is common.
      • borism 16y ago
        Housing prices are generally less volatile than illiquid start-up stock.
        • chollida1 16y ago
          agreed, that's why I made sure to point out that it was a joke:)