The Right Number of Shareholders for Your Company
With Facebook growing at a torrid rate, the private company has had to raise several rounds of capital as well as issue shares to its employees. As a result, the company has close to 500 shareholders. The problem? Once a company has more than 500 shareholders and $10 million in assets, an obscure Securities & Exchange Commission rule forces it to start filing as if it were a public company. So Facebook managed to get an exemption from the SEC.
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