The secondary market for shares is already liquid.

All of a sudden they have to deal with all these new reporting requirements.

WTF...

(http://www.autoadmit.com/thread.php?thread_id=1862992&forum_id=2#19877481)

I'm not sure if anyone has said this yet, but once you reach a certain threshold number of shareholders (I think it's 500), you are subject to all of the reporting requirements of a public company anyways.

Same thing happened to Google. They didn't want to go public, but because they rewarded early employees with stock in addition to compensation, they reached 500 quickly. Forced their IPO hand a bit.

(http://www.autoadmit.com/thread.php?thread_id=1862992&forum_id=2#19877571)

edit: I see someone else has already pointed this out

(http://www.autoadmit.com/thread.php?thread_id=1862992&forum_id=2#19877600)

why would you ask this question after everyone has already answered it little breh

(http://www.autoadmit.com/thread.php?thread_id=1862992&forum_id=2#19877938)

Anyway, turns out 500 is a magic number or something. Who knew?

(http://www.autoadmit.com/thread.php?thread_id=1862992&forum_id=2#19877968)

(http://www.autoadmit.com/thread.php?thread_id=1862992&forum_id=2#19886033)

(http://www.autoadmit.com/thread.php?thread_id=1862992&forum_id=2#19886142)

It's impossible to get appreciable increases in the user base. Increasing per-user revenue is going to be hard as fukk too.

(http://www.autoadmit.com/thread.php?thread_id=1862992&forum_id=2#19877620)

Cash in lieu of fractional shares 100:1 reverse, any stockholder with less than 100 shares is cashed out and no longer a stockholder.

Just pick the ratio that works to get you lower in number.

(http://www.autoadmit.com/thread.php?thread_id=1862992&forum_id=2#19886118)

And why on earth would the company want to put itself in a situation where it will end up fighting over the valuation in court with pissed off minority shareholders?

And are you planning to do this every few years? They're almost certainly continuing to grant stock to employees - which loses its attractiveness if employees know you're going to pull this shit on them, as well as losing its value to the company if they'll have to pay the employees out in cash everytime they do this.

But otherwise, you've got a terrific business plan here.

(http://www.autoadmit.com/thread.php?thread_id=1862992&forum_id=2#19889730)

BA failz.

(http://www.autoadmit.com/thread.php?thread_id=1862992&forum_id=2#19889928)

1. Youth Chessmaster

2. Philosophy major with bizarre set of beliefs that differ from almost everyone else in the field.

3. Lawyer who quits law in order to do his own thing, mostly involving investing in the internet so that no one has to interact face-to-face.

4. Radical libertarian who believes it is impossible to compromise with either major party.

5. Giver of long speeches in a monotone about how everyone else is wrong about everything.

6. Spender of millions attempting to build sovereign nations in the middle of the ocean.

That seems like a really well-adjusted person who can readily find places where they fit in.

Jesus, read this from the New Yorker:

"His parents banned TV until Peter was in junior high school. He grew up with the untrammelled self-confidence and competitiveness of a brilliant loner. He became a math prodigy and a nationally ranked chess player; his chess kit was decorated with a sticker carrying the motto “Born to Win.” (On the rare occasions when he lost in college, he swept the pieces off the board; he would say, “Show me a good loser and I’ll show you a loser.”) As a teen-ager, his favorite book was “The Lord of the Rings,” which he read again and again. Later came Solzhenitsyn and Rand. He acquired the libertarian faith in high school and took it close to the limit. (He now allows for government spending on science.)

Though Thiel is forty-four, it isn’t hard to imagine him in his late teens. He walks bent slightly forward at the waist, as if he found it awkward to have a body. He has reddish-brown hair with a trace of product on top, a long fleshy nose, clear blue eyes, and fantastically white teeth. He wears T-shirts and sneakers and prefers to hang out in coffee shops. He thought that the actor who played him, for thirty-four seconds, in “The Social Network” made him look too old, and too much like an investment banker. Although he’s acquired various luxuries that one associates with a twenty-first-century mogul, he lacks the firm taste that would allow him to spend money naturally. His most striking feature is his voice: something metallic seems to be caught in his throat, deepening and flattening the timbre into an authoritative drone. During intense moments of cerebration, he can get stuck on a thought and fall silent, or else stutter for a full forty seconds: “I would say it’s—it’s—um—you know, it is—yes, I sort of agree—I sort of—I sort of agree with all this. I don’t—um—I don’t—um—there is a sense in which it’s an unambitious perspective on politics.” Thiel expresses no ill will toward anyone, never stoops to gossip, and seldom cracks a joke or acknowledges that one has been made. In an amiably impersonal way, he is both transparent and opaque. He opens himself to all questions and answers them at length, but his line of reasoning is so uninflected that it becomes a barrier against intimacy."

Alternatively, watch any interview with the guy. Just because he's good at investing in other businesses run by brilliant introverts doesn't mean he has normal social skills.

(http://www.autoadmit.com/thread.php?thread_id=1862992&forum_id=2#20082987)