[linux-elitists] Re: Elite vs. Elitist
Mon Aug 2 16:49:51 PDT 1999
It's funny, there's all sort of things they could have done to make sure these
people got shares, or to arrange some financial benefit that the SEC does not
have its grip on.
Chaosium had to deal with something like this earlier in the year; they had
a need to raise a bunch of money, and a bunch of eager buyers, but not quite
so much (nor expecting so much profits) that they could afford the outrageous
expense. Apparently "going public" or even going private with new stock
involves filing different paperwork in every state of the Union. Bazorch!
They ended up founding a "trading association" with member benefits. In other
words, as far as Uncle Sam is concerned it resembles Costco.
Other companies have arranged for plain stock grants, but I understand that
to do that, they need to take some of their precious IPO money, and burn it
right away by "buying up" shares from the now open market. (Otherwise they
might only be able to giev away very restricted stock.) I guess RH was too
cheap, or needs its money too badly, to use this method.
They'd have done better to just send out checks...
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