Gust

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How Reed Hastings’ Facebook Status Update Landed Netflix in SEC’s Crosshairs

Gust

When it goes public, a company must adopt a raft of policies and measures designed to comply with insider trading rules and tightly control disclosure of financial and other material non-public information that, if disclosed, could significantly alter the total mix of information available to those making investment decisions.

SEC 158
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Second-Class Investor Citizens: Facebook’s IPO and Dual-Class Equity Structures

Gust

Management control is further entrenched by other provisions including a “controlled company” designation , exempting the company from the customary stock exchange-imposed corporate governance rules that apply to the vast majority of public companies in the post-Sarbanes-Oxley era.

IPO 159