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Alex: It's not just customary, but really important to have pro-rata rights on future issuance of stock.
77,466,293 shares of our common stock reserved for future issuance under our equity compensation plans, consisting of 25,000,000 shares of Class A common stock reserved for issuance under our 2012 Equity Incentive Plan, and 52,466,293 shares of Class B common stock reserved as of March 31 , 2012
According to the document, a Facebook IPO will result in 2,741,527 shares outstanding (the total number is actually 2,818,994,047, but we're not including the 77,466,293 shares reserved for future issuance in our calculation), which implies a market cap of between $93.2 billion and $104.2 billion.
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Alex: At some level, the option pool is a valuation issue, and at another, a future ownership issue (issuance of options dilutes investor ownership, which you cannot buy back).
The problem we have is the uncertainty that surrounds the huge balance sheet and our view that future capital issuance cannot be ruled out.
Investors will normally receive a right to purchase more stock in connection with future equity issuances, to maintain their percentage interest in the company.
The rights of the investors (rights to profits, distributions, tax benefits, voting rights, pre-emptive rights for future unit issuances, etc). need to be clearly set forth in the LLC's Articles of Organization and/or in an investor rights agreement.
That will be harder in future".We expect synthetic CDO issuance to drop off," says Robert McAdie, global head of credit strategy at Barclays Capital.
He even scooped up 7 million Microsoft shares last summer after senior executives at the software giant told him that options issuance in the future will be significantly lower than in the past.
He even scooped up 7 million Microsoft shares last summer after senior executives at the software giant told him that options issuance in the future will be lower than in the past.
However, some analysts warn that the government will have to increase debt issuances in the future to finance reconstruction.
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