The Headache Of Share Trading For Facebook And Zynga
One of the hassles for start-ups prior to floating on the stock exchange is growing numbers of employees trading their shares to acquaintances. The big problem is the risk of the number of shareholders growing past 500, bringing the burden of additional financial reporting obligations.
One of the hassles for start-ups prior to floating on the stock exchange is growing numbers of employees trading their shares to acquaintances. The big problem is the risk of the number of shareholders growing past 500, bringing the burden of additional financial reporting obligations.
So it’s not surprising to learn that companies like Facebook and game developer Zynga are seeking to restrict the trade of shares, by imposing hefty administrative fees. Bloomberg reports that Facebook is charging $2,500 every time shares change hands, while Zynga is charging somewhere between $4,500 and $6,000.
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