smellthejeta
The plane I solo'd in
- Joined
- Mar 31, 2003
- Posts
- 588
Anjinoo, answer me this...
Say you own something that, oh, I dunno, 100 other people have. 20 people have sold that something for $100. What do you think your something is worth? You're going to say $100, right? Well, what happens if nobody buys your something? It's not worth anything now.
That was a major problem with ESOP. The stock the employees had was not able to be sold on the open market, thus decreasing its value. Management was free to jerk the employees around, and there's nothing they could do about it.
Say you own something that, oh, I dunno, 100 other people have. 20 people have sold that something for $100. What do you think your something is worth? You're going to say $100, right? Well, what happens if nobody buys your something? It's not worth anything now.
That was a major problem with ESOP. The stock the employees had was not able to be sold on the open market, thus decreasing its value. Management was free to jerk the employees around, and there's nothing they could do about it.