Part 3/11:
Secondary share sales are common in private startups, especially in high-growth areas like AI. They provide liquidity for employees holding equity in a company that hasn't yet gone public. When a startup such as OpenAI is valued at half a trillion dollars, early employees who received stock options or shares can potentially cash out at huge multiples, transforming their stakes into significant wealth.
This process also reveals broader trends about employee ownership and the risks tied to high valuations. The sale cap—only a portion of authorized shares being sold—could suggest that employees are holding onto their stock, betting on the company's future growth beyond the current valuation, potentially aiming for a trillion-dollar valuation.