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Not all illiquid assets are worthless. It's specifically the combination of being prohibited from selling and no prospects for ever receiving a dividend that m
by fredkbloggs 11y ago
Not all illiquid assets are worthless. It's specifically the combination of being prohibited from selling and no prospects for ever receiving a dividend that make these shares worthless. In fact, a share you cannot sell but does pay dividends is very similar to the kind of revenue- or profit-sharing arrangements the author suggests.
- jackgavigan 11y ago> ..prohibited from selling... That would be a Big Red Flag for me.
- pjc50 11y agoIt's the norm for share options. You can't sell them or even in many cases keep them after you quit the company. It's a very circumscribed deal.
- jackgavigan 11y ago"Everyone else does it this way" isn't a good enough reason for me.