The company’s employee shares are the shares subscribed by the company’s employees at the issue price when the company publicly issues shares to the public.
In accordance with the Provisional Regulations on the Administration of Stock Issuance and Trading. The share capital of the company’s employee shares shall not exceed 10% of the total share capital to be issued to the public. The company’s employee shares can be listed and circulated 6 months after the company’s shares are listed.
Company employee shares and internal employee shares are two completely different concepts. In the early days of the joint-stock system pilot program in my country, a group of joint-stock companies that did not publicly issue shares to the public and only raised shares for legal persons and internal employees of the company were called private placement companies, and the shares issued by the company held by internal employees as investors Known as internal employee shares, in 1993, the State Council officially issued a document clearly stating that the approval and issuance of internal employee shares should be stopped.
How long can the company’s employee shares be traded?
After the stock goes public, it takes three years to wait. Employee stock ownership can only be purchased by employees of a business or company and is non-tradable. It is equivalent to employees who are also shareholders of the company. They have to take stock risks , but at the same time they can also benefit from dividends. There are pros and cons to this format. Stocks on the exchange are for everyone in the society, with no status restrictions. The difference is that the owners of these shares are only responsible for their own profits and losses but do not have to bear the risks of the company’s operation.