> Facebook has said it’s not planning to IPO anytime soon
Exactly how do they plan to let employees sell stock without accidentally becoming a public company?
Is this stock being sold back to the company itself?
Exactly how do they plan to let employees sell stock without accidentally becoming a public company?
Is this stock being sold back to the company itself?
doubtful. this is not a new practice. banks and investment houses have been buying options in private companies from potential shareholders for years
Where would the money come from? Very few facebook employees are rich in cash.
they sell it to banks and/or investment firms who are basically buying a futures contract on a facebook ipo. the employee loses their rights to sell these shares, the bank gains the rights.