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by SilasX 1602 days ago
Usually, they'll have to, since such stock is usually conditioned on you granting the employer the Right of First Refusal (i.e. the chance to beat any offer from a buyer you find).
2 comments

ROFR devalues your ownership interest significantly in most deals.
so basically... there is not a market, and it's a fake stock
Please look up right of first refusal before posting nonsense like that.

It means they have to match the offer or let you sell. It’s exactly like a national best bid guarantee in a real market.

No?

If you can find a buyer for a certain amount, you can sell for that amount. The company can just opt to be the buyer.

Check your stock agreement. I worked somewhere it didn't just grant first right of refusal, but the company had to _approve any sale_. In practice, they approved almost no sales, so this was a ban on selling shares before IPO.
This seems like an interesting dynamic because the company has to balance getting a random outside shareholder vs having to buy their own shares back for whatever price you negotiated.
Ownership is ownership. Your car isn't listed as a public company on the NYSE, but that doesn't mean your 1 share (worth 100%) in your car is fake.
You do not need a formal market for stock to be stock. A share of stock represents ownership. You are confusing that with publicly traded stock markets.