Well, he never said they are worth $10 a share. he said that is what they are selling their holdings for. It might be a little lower.
We are in huge risk if it is a start up company, in that case, you never know what the stock is going to do. it may go up or it may just sink like a rock. You are right, there is no way they are going to just let you dump shares into the market. it will be restricted.
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