The reason that you must bury your public company's shares is to reduce your company's float. The lower your public company's float, the lower your investor relations cost. [See my article on the proper use of shares.] fxcm.my/cara-beli-saham-cfd/ The buried shares are deducted from your float and the balance is called the effective float. You want to get the effective float as close to zero as possible. You don't need to find buyers if your effective float is 0. There are no shareholders who want to sell their shares in your company. This, of course, is the ideal situation. If you want your company to be successful in every aspect, I recommend that you structure the float of your company this way.
Speculators are not investors
American stock buyers, on the whole, are speculators, not investors [http://www.iht.com/articles/529443.htm]. Stocks are bought with the intention of selling them quickly at a profit. Even the U.S. Government realizes that speculation doesn't lead to economic growth. Stock buyers who are willing to hold on to their shares for a minimum of one year pay less tax than those who trade in the Market quickly and sell their stocks. Tax incentives from the American government have not changed the speculative nature in the U.S. Market because long-term investors continue to lose money. I've always wondered why long-term investors buy and hold stocks in this manner.
Avoiding Having Your Shares In the Market
I have been involved in the North American stock market for over 20 years and can confirm that professionals make more money by selling shares short (betting on the fall of the share price or the bankruptcy of the company) than by purchasing shares. The textbooks only list one of over two dozen of ways that professionals use to sell short stocks. I have written an article on shorting shares that includes 24 ways. It is the only way to effectively defend against short selling. Make sure that your company shares are not in possession of the Depository Trust Company in New York.
When most people buy shares, they leave them "in street name" rather than taking possession of the share certificates. "In street name" simply means they are all turned over to the DTC for safekeeping. Short sellers "borrow" or otherwise rely on the existence of street stock to sell nonexistent shares into the company's market. Public short sellers anticipate paying back the "borrowed shares" at a much lower price when the stock crashes. Professional short sellers never expect to buyback the nonexistent shares and legally avoid U.S. taxes on their profits in doing so. Your company cannot be sold short if the shares can't legally be borrowed.
If you can prevent your shares from being sold on the DTC by having your shareholders insist that they receive their certificates in person, then your company has a Cash Market. Few companies bother or understand the dangers they run from short sellers. Brokerage firms and the DTC work very hard to make it extremely difficult to create a Cash Market in any stock.
Insider shares are buried
Insiders are required to "bury" their certificates. All insiders must agree to a Pooling & Vaulting Agreement. All the insider share certificates, by far the largest percentage of stock in your company, are placed in a bank safe deposit box or other repository. At least two designated insiders must be present to open that safe deposit box. The result is these shares can't be sold and, since they aren't held by the DTC, short sellers can't use them. When you make acquisitions with your shares, or further issued shares, those shares must also be added to your safe deposit box or other repository. This policy prevents your float from increasing. Nor can anyone use those shares to sell short your stock. This gives you total control over your stock, something that very few companies achieve.
Keeping Your Float Private
It is harder to stop the American public from selling their shares in your company (the float). It is possible, I think. You must eliminate the potential loss for your shareholders. You must pay them to keep their shares. You must also educate them on the fact that they will make the most money when insiders decide to sell their shares during a company merger or sale. They're more likely to agree to the plan if they know the insiders are not selling.
Your public shareholders can avoid loss by selling half of their position when the public company's share price doubles over what they paid for their shares. The shareholder has his risk capital returned and now has a cost-free investment in your public company. His original risk capital is now available for another investment. If the initial buyers of a stock do it, you have reduced the float by 50% and the Effective Float is half of the float. If the second group of buyers follow this practice, the Effective Float is 25% of the float. Your company has cut its Investor Relations costs by 75%. These funds can be used to expand the company.