Excerpt from a Facebook IPO scenario snapshot
There are lessons here for entrepreneurs.
From the get-go, companies may want to have stock option plans that prevent sales to third-party investors until an I.P.O. or other liquidation event. This will have the benefit of keeping the company below the 500-shareholder level and will also allow it to control any private market in its shares from springing up. Twitter, LivingSocial and Square have all reportedly required new investors to agree to terms like this.
Facebook May Be Forced to Go Public Amid Market Gloom - NYTimes.com
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