Posted by & filed under Company Analysis, Governments & Regulators, Management Issues.

Description:  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.

Date: 10/15/2010


Questions for discussion: 

  • 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?

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