7 ms·
Why doesn't this apply to Stripe with its 8,500 employees? > The reason Microsoft had to go public in 1986 was because Bill Gates had been using stock to attra
by yieldcrv 2y ago
Why doesn't this apply to Stripe with its 8,500 employees?
> The reason Microsoft had to go public in 1986 was because Bill Gates had been using stock to attract talent. Microsoft projected that by sometime in 1987, they would have 500 shareholders, which would require Microsoft to register with the Securities and Exchange Commission, effectively turning them into a publicly traded company, but without the benefits of going public in the conventional way.
> Backed into this corner, Gates agreed in late 1985 to pursue an IPO.
- canucker2016 2y agoThe rule was changed in 2012 according to articles on investopedia.com ( https://www.investopedia.com/terms/5/500-shareholder-threshold.asp https://www.investopedia.com/terms/5/500-shareholder-thresho... and https://www.investopedia.com/terms/1/2000-investor-limit.asp https://www.investopedia.com/terms/1/2000-investor-limit.asp ) The limit has been raised to 2,000 shareholders. The company isn't required to go public, but the company does have to file its financial data with the SEC.
- yieldcrv 2y agoThats sort of what I thought, Do the rest of us get to see the financial information?
- jedberg 2y agoThere are workarounds. Not sure if Stripe is using any of them, but the gist of it is to create subsidiaries that don't employ more than 2000 people (that's the current limit). So for example you'd have Stripe Engineering Inc., and Stripe Marketing Inc. and so on.