friends and family stock

Friends and Family Share

Stock that is sold to executives in a company or their friends and relatives before an IPO. This helps the company raise financing before its IPO. However, the issue of friends and family stock can lead to conflict of interest and, as such it must abide by applicable laws.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

friends and family stock

The shares of an initial public offering that are allocated to individuals designated by executives of the firm being taken public.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
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