Description:Â Although Facebook isn’t yet public, employees and other insiders have been able to cash out some of their equity through private stock-sale deals. But the company is trying to dump cold water on that rapidly heating up market: Facebook recently began charging employees a $2,500 fee if they sell their private stock.
Questions for discussion:Â
- Why are these firms trying to mitigate stock selling by employees?
- What impact might this have on non-employee investors?
- Could this strategy affect any future IPO values?
- What would you do if you were an employee and held stock?
- What would you do if you were the financial managers of these firms?