2 ms·
This is a commonly cited reason, but in reality, how many employees can be given pre-IPO stock before the company ends up with so many owners that they're force
by brown9-2 16y ago
This is a commonly cited reason, but in reality, how many employees can be given pre-IPO stock before the company ends up with so many owners that they're forced to file for IPO?
Someone correct me if I'm wrong but I thought the number of owners that a privately-held company can have before being forced to go public is only 300.
- dstein 16y agoEmployees would typically only be given options, not actual stock. I might be wrong, but I think they can give as many options as they want. And as anyone who has been granted options knows, options usually end up being worthless.
- whopa 16y agoFacebook got an exemption from the SEC from that rule (it's 500 stockholders and $10 million in assets): http://www.businessweek.com/technology/content/nov2008/tc20081120_566312.htm http://www.businessweek.com/technology/content/nov2008/tc200...