TENSIONS RISE IN SILICON VALLEY OVER SALES OF START-UP STOCKS

Summary from the TLDR newsletter

Private stock sales have always felt a bit like the Wild West. Investors continue to find ways around companies' attempts to restrict stock sales using techniques such as forward contracts, which allow employees to cash out their future shares through a pledge to sell the shares to an investor in the future. Some companies forbid these practices and say such deals are void. Companies creating funds with these shares say they are making the market more accessible and that shares obtained through forward contracts are legal.