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Closely held companies have a simple remedy to all of those - they force you to litigate to exercise your rights. The company invariably has the resources to bu

• tptacek 16y ago
  That may be so, but it's orthogonal to the issue at hand. Employees aren't prevented from selling their shares only because of stupid SEC regulations, but also because most companies don't want their equity resold. Envision any legal future you want, and companies will still find a way to express that employees should share the upside of an acquisition, but cannot distribute company equity to outsiders. Can I just say, real quick: for all I know, there's a trend in the valley right now towards giving employees unrestricted common stock on exercise of their options. I think this is crazy --- unrestricted stock once allowed me to imperil a deal at a prior employer --- but who knows? All I can say is that every startup I've worked at or known people working at, employee stock was heavily restricted.