Originally Posted by DuckieHo
No, the issue for Eduardo Saverin in the "The Social Network" is not the amount
of shares. It's the type
I haven't seen the movie in a while so I did some research and it looks like it was the amount.
Zuckerberg was able to reduce Saverin's stake in the company from 30% to less than 10% in short order. His equity was diluted from that point onward.... Saverin eventually sued Facebook. The matter was soon settled. Saverin got about 5% of the company
Either way, shares (a way to measure equity) do exist in private companies, and to say they don't is not true.