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What would that do to all the Stripes holding illiquid shares in a private company?
by thisiscorrect 5y ago
What would that do to all the Stripes holding illiquid shares in a private company?
- marvin 5y agoI'm not familiar with Stripe's situation, but there are non-public markets available for this kind of stock sale. You just can't buy from them unless you're already rich. I'd guess that long-term employees do have an amount of flexibility in that regard.
- IgorPartola 5y agoCan you form a mutual fund/ETF that invests into those kind of companies via the non-public markets and then sell shares publicly for the fund?
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- jagged-chisel 5y agoPublicly traded organizations can have any kind of private investment. I wonder, though, if there is regulation around how much of the public org’s capital can be put in private stock purchases…
- hartator 5y agoI think some VCs are already also offering shares via mutual funds.
- reportingsjr 5y agoThis is already a thing, large investors like Fidelity do exactly this. e.g. Fidelity has a significant investment in SpaceX through a handful of their mutual funds, which you can then purchase and basically invest in SpaceX indirectly.
- snowwolf 5y agoScottish Mortgage (SMT) in the UK does this and has a stake in Stripe (https://citywire.co.uk/investment-trust-insider/news/boost-for-scottish-mortgage-as-stripe-soars-to-95bn/a1480918 https://citywire.co.uk/investment-trust-insider/news/boost-f...)
- Panther34543 5y agoUnfortunately many companies have clauses in their options grants that prohibit employees from selling shares to any investor not approved by the company board (e.g. EquityZen).
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- sudhirj 5y agoI’ve seen companies doing buy backs to give people liquidity. In India, anyway. Check out Zerodha.