Uber wants to give company stock to its drivers

How cool would this be? Is this the next big jump in investing?

AirBnB wants to give hosts equity as well. Tesla wants to go private and let public investors still hold onto their shares.

Currently the SEC rules state that:

Limiting the Number of Shareholders in Private Companies. The US Securities Exchange Act of 1934, section 12(g), generally limits a privately held company to fewer than 500 shareholders. [Gust]

Of course there are ways around it by investing in a fund that is an investor in the company, however for you to do that you’d have to be an accredited investor.

To be considered an accredited investor according to the SEC, at least one of the following conditions must apply to you: You must have earned an individual income of more than $200,000 per year, or a joint income of $300,000, in each of the past two years and expect to reasonably maintain the same level of income. [Fool]

Back in October, Uber sent a letter to the SEC requesting that they change their rules to allow drivers and contributors of the platform to be investors.  Time will tell if/when this happens, but it’s exciting to say the least.

Related  RUMOR: RIP Racked; Also Curbed, & SB Nation experiencing massive layoffs

[Source: Engadget]

COMMENTS