Discussion about "The Facebook 500 and a Quicker IPO? - CNBC"
The Facebook 500 and a Quicker IPO? - CNBC
This is an interesting article that discusses the possibility of Facebook being forced to file due to have more than 500 shareholders and, of course, more than 10 Million in assets.
It troubles me a bit that journalists make projections with very little i the way of facts. Neither I or the journalist have any idea what type of restrictions are on Facebook shares. It may be that very few shares can actually be sold, transferred or "otherwise hypothecated". It may be that the shares are split among several classes of shars, none of which have more than 500 holders.
All of the being said, it is important to note that when you are a small company, the concept of 500 shareholders seems unrealistic and many companies do not properly plan for this.
I wonder if any ECE members have been a situations where they came upon this limit before they had planned to.
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With the recent discussions on Facebook shares, I thought I would dig up this posting from early March. This article discusses the 500 shareholder rule and its possible impact on Facebook.