why are the shares of the private companies restricted?

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why are the shares of the private companies restricted?

2006-06-16 02:47:43 · 3 answers · asked by tola 1 in Business & Finance ➔ Corporations

3 answers

Are you basically saying you don't know the difference between PUBLIC and PRIVATE?

Public offeriengs are for the public.

Private conpanies are therefore NOT PUBLIC..

2006-06-16 02:51:55 · answer #1 · answered by Marvinator 7 · 0⤊ 0⤋

If there are two shareholders, the restriction exists so one cannot sell her shares to another without consent. If there was no restriction a person could be a partner of a person whom they did not like.

2006-06-16 09:58:04 · answer #2 · answered by parlimentarian 1 · 0⤊ 0⤋

if their shares wernt restricted they wud have been public cos. pvt wud nt hv been existing

2006-06-16 09:51:41 · answer #3 · answered by sandy 3 · 0⤊ 0⤋