3 ms·

Can someone explain this in simple language?

by im3w1l 3y ago

adoxyz 3y ago
Companies typically use Carta to manage their cap table, shares, and overall ownership of the company. This requires a high level of trust as there is a lot of financial information at stake. Carta seems to be taking this confidential information and is potentially sharing it with other investors and soliciting investors to sell their shares. This is a big no-no.
- zerothOffset 3y ago
  Same can be said about JP Morgan who solicts you with credit card offers and other financial products no? They know where you live and how much is your credit score you bank balance
  - liamwestray 3y ago
    None of those things have a material effect on anyone by JP Morgan. The “service” Carta is selling here is your company to other people. Given 99% of private companies have specific limitations on not being able to do this with a company’s securities, this almost certainly runs afoul of SEC, FINRA, and other fraud regulations.
heads 3y ago
Imagine you are planning a wedding and you use party.com as an easy way to manage the guest list. Maybe you give your friend two seats — him and a plus one — the Smith family four seats, and your diving club pals a whole table. Also, you’ve invited surprise guest auntie Beyoncé. These are all people with whom you have entrusted important rights such as dressing nicely, staying relatively sober, and not poking the cake. Additionally, the wedding venue has a fire safety limit of 150 people. Any more than this and the authorities shut you down for abusing the privileges they give to small weddings. Well now imagine that party.com has been emailing your neighbours and mortal enemies the Joneses saying the Smiths have two seats they want to sell and that Beyoncé is going to be there. They also help the diving sell half their table to what turn out to be classical music supremacists who show up protesting Beyoncé’s pop music. One of them also gets drunk and pokes the cake. Thanks a bunch party.com. In real life, shareholders can do unhelpful things or act with downright hostility so you need people you know and who you trust to behave themselves. The SEC also give you an exemption from having to register with them (and publish your accounts) but only if you have fewer than 500 shareholders. If a big shareholder splits their holding and sells to a bunch of random people then they risk pushing you over that limit. Carta / party.com are abusing their position by marketing your shares / wedding invitations behind your back.
- zerothOffset 3y ago
  Lol… someone has had quite a wedding experience
- hyperdimension 3y ago
  What a great analogy. Thank you for taking the time to write this up.

Can someone explain this in simple language?

by im3w1l 3y ago

Can someone explain this in simple language?

Companies typically use Carta to manage their cap table, shares, and overall ownership of the company. This requires a high level of trust as there is a lot of financial information at stake. Carta seems to be taking this confidential information and is potentially sharing it with other investors and soliciting investors to sell their shares. This is a big no-no.

zerothOffset 3y ago
Same can be said about JP Morgan who solicts you with credit card offers and other financial products no? They know where you live and how much is your credit score you bank balance
- liamwestray 3y ago
  None of those things have a material effect on anyone by JP Morgan. The “service” Carta is selling here is your company to other people. Given 99% of private companies have specific limitations on not being able to do this with a company’s securities, this almost certainly runs afoul of SEC, FINRA, and other fraud regulations.

heads 3y ago

Imagine you are planning a wedding and you use party.com as an easy way to manage the guest list. Maybe you give your friend two seats — him and a plus one — the Smith family four seats, and your diving club pals a whole table. Also, you’ve invited surprise guest auntie Beyoncé. These are all people with whom you have entrusted important rights such as dressing nicely, staying relatively sober, and not poking the cake. Additionally, the wedding venue has a fire safety limit of 150 people. Any more than this and the authorities shut you down for abusing the privileges they give to small weddings. Well now imagine that party.com has been emailing your neighbours and mortal enemies the Joneses saying the Smiths have two seats they want to sell and that Beyoncé is going to be there. They also help the diving sell half their table to what turn out to be classical music supremacists who show up protesting Beyoncé’s pop music. One of them also gets drunk and pokes the cake. Thanks a bunch party.com. In real life, shareholders can do unhelpful things or act with downright hostility so you need people you know and who you trust to behave themselves. The SEC also give you an exemption from having to register with them (and publish your accounts) but only if you have fewer than 500 shareholders. If a big shareholder splits their holding and sells to a bunch of random people then they risk pushing you over that limit. Carta / party.com are abusing their position by marketing your shares / wedding invitations behind your back.

zerothOffset 3y ago
Lol… someone has had quite a wedding experience
hyperdimension 3y ago
What a great analogy. Thank you for taking the time to write this up.