Redhat's Stock Offering to Developers Not Working Out as Planned

from the go-ahead,-take-our-money dept

So it seems that many of the folks that Redhat offered “friends and family” IPO-priced shares to cannot get them as ETrade requires IPO traders to have a certain amount of experience and net worth to trade in IPOs. This brings up a mixed reaction for me personally. As I’ve said before, I don’t like the idea of giving out stock to the public on the assumption that it’s a definite “reward” as traders should realize it really (really!) is possible for stock to go down and people to lose money. All that ETrade is doing is weeding out investors who may not realize that or may not be prepared to handle it. However, because of the sillyness of our markets, the fact is, it should be a pretty safe bet, and Redhat is just trying to reward folks who helped them out.

Rate this comment as insightful
Rate this comment as funny
You have rated this comment as insightful
You have rated this comment as funny
Flag this comment as abusive/trolling/spam
You have flagged this comment
The first word has already been claimed
The last word has already been claimed
Insightful Lightbulb icon Funny Laughing icon Abusive/trolling/spam Flag icon Insightful badge Lightbulb icon Funny badge Laughing icon Comments icon

Comments on “Redhat's Stock Offering to Developers Not Working Out as Planned”

Subscribe: RSS Leave a comment
Seldon says:

A better approach

I think that if Red Hat is really concerned about giving a reward to those developers ( and I think they should ) it would be better if they give them some stock options. In that way after the IPO, Red Hat would sell them shares ( if the IPO goes well ) at a lower price ( the one set for the initial offering ) and cash in the difference ( as public companies do with their employes ).
That way, there’d not be any risk and it would really be a prize.

Mike (profile) says:

E*Trade tells them to lie

That same article listed above has been updated (originally it said there was no comment from E*Trade). Now, however, apparently E*Trade sent out a note telling people to “try again” and perhaps they had filled out the original incorrectly… There are also quotes from people at E*Trade suggesting that spurned developers lie on the form, because it’s not like E*Trade is going to check up on them. Anyone else think this is a little questionable?

Add Your Comment

Your email address will not be published. Required fields are marked *

Have a Techdirt Account? Sign in now. Want one? Register here

Comment Options:

Make this the or (get credits or sign in to see balance) what's this?

What's this?

Techdirt community members with Techdirt Credits can spotlight a comment as either the "First Word" or "Last Word" on a particular comment thread. Credits can be purchased at the Techdirt Insider Shop »

Follow Techdirt

Techdirt Daily Newsletter

Techdirt Deals
Techdirt Insider Discord
The latest chatter on the Techdirt Insider Discord channel...