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Comment by onphonenow | Hacker News Reader

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onphonenow·

I'm curious about this as well. Does your employer know that you sold or not?

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They’ll have to, if you’re actually transferring ownership of the shares.

To transfer the stock directly you will need approval from the company/board.

I'm curious if anyone has done it without by using a private contract between buyer/seller (google: forward contracts).

Usually, they'll have to, since such stock is usually conditioned on you granting the employer the Right of First Refusal (i.e. the chance to beat any offer from a buyer you find).

ROFR devalues your ownership interest significantly in most deals.

so basically... there is not a market, and it's a fake stock

Please look up right of first refusal before posting nonsense like that.

It means they have to match the offer or let you sell. It’s exactly like a national best bid guarantee in a real market.

No?

If you can find a buyer for a certain amount, you can sell for that amount. The company can just opt to be the buyer.

Check your stock agreement. I worked somewhere it didn't just grant first right of refusal, but the company had to _approve any sale_. In practice, they approved almost no sales, so this was a ban on selling shares before IPO.

This seems like an interesting dynamic because the company has to balance getting a random outside shareholder vs having to buy their own shares back for whatever price you negotiated.

Ownership is ownership. Your car isn't listed as a public company on the NYSE, but that doesn't mean your 1 share (worth 100%) in your car is fake.

You do not need a formal market for stock to be stock. A share of stock represents ownership. You are confusing that with publicly traded stock markets.

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