3 ms·
hmm: Where CartaX and the cap table business converge is if we match a trade in the marketplace, we go to the company and ask if they will allow
by w10-1 3y ago
hmm:
Where CartaX and the cap table business converge is
if we match a trade in the marketplace, we go to the
company and ask if they will allow it.
Meaning: the company does not give permission or know that CartaX is trading in the company.
Asking the company about a pending trade means that two people who want to make the trade will be very disappointed, and will likely publicly complain that the company is blocking them, throwing doubt on the company.
This in turn forces the company to approve the transaction and permit the market, notwithstanding the adverse incentive effects on options/grants. Any approval of one transaction would raise scrutiny on any denials. Even the opportunity to bail cuts against the notion that people are in the same boat together.
A good company doesn't just "do no evil". A good company ensures its interests are completely aligned with their customers, so there will be no forces pushing them to take advantage of their customers.