friends-and-family sharesnoun.
Company shares given to friends and family members prior to an initial public offering. Also known as directed shares.
Example Citation:
"The phenomenon is growing so rapidly that friends-and-family shares are becoming a new currency in the Bay Area. Some new employees even negotiate friends-and-family shares as part of their employment contracts."
—Kathleen Pender, "Be Cautious When Business Associates Offer Access to IPO Shares," The San Francisco Chronicle, April 7, 2000
