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RE: Chinese Companies Ask Employees To Buy Their Stock, Promise To Cover Losses

in #china7 years ago

People buying and borrowing to buy stocks. Such blind faith. People's lack of financial understanding is shocking. This also happens in startups in the US. Employees sign agreements based on stock awards, but have no idea how cap tables are structured, option expiration date, preferred shares and their multiples. Then wonder when an IPO or acquisition happens, employee shares are worth very little if anything.

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