Over that period, a total of $544 million of private company stock was sold, more than double that from a year earlier, according to Nasdaq Private Market. All of this has led to highly valued tech start-ups reaching a compromise by letting employees cash out with restrictions. When employees leave start-ups, they often have the opportunity to buy stock that has been set aside for them at a low price. Many of their workers are compensated with lucrative piles of a start-up’s stock, but cannot cash it in because the shares do not trade publicly. In the past, Houzz said an employee’s stock was subject to substantial transfer restrictions and that the company had the right to buy the stock first.

Source: New York Times August 11, 2016 01:18 UTC