A lot of private companies restrict sales of their stock. If you are an employee or an early investor at Stripe or SpaceX or OpenAI or another hot startup, you might own stock that you want to sell. But many hot startups won’t let you sell, or will require that you ask for permission or give them a right of first refusal. Perhaps the company will provide some liquidity — it will arrange occasional tender offers to help employees cash out their shares — but there’s no guarantee, and you might have to wait until the company goes public to sell your stock.
Meanwhile, a lot of people are clamoring to buy shares of hot private companies. Owning SpaceX or OpenAI stock is cool, and many individuals want to buy some, but they have a hard time finding any. There are insiders who want to sell, and outsiders who want to buy, but they can’t trade with each other and the market doesn’t clear. Annoying.
www.bloomberg.com
#Sell #SpaceX #Stock
