Throwaway account, reporting on the secondary market!<p>Companies will often do everything in their power, including running roughshod over their contractural and legal obligations, to prevent employees from selling stock on the secondary market. If they&#x27;re not total jerks, they will encourage you to participate in &quot;internal buybacks&quot;. Unfortunately, these buybacks are run as a service for investors, presenting them massively undervalued in exchange for loyalty.<p>Regulators have just begun to take interest in the abuse of transfer agency by privately-held companies distributing shares in lieu of compensation. Similar attention should be paid to the information provided to prospective employees at the time of hire, when the decision to accept stock in lieu of cash is made.