In a privately held company, who owns the shares of the company? For example, when a company goes public with 20% of its shares, where do does shares come from?
2007-12-04 16:13:24 · 2 answers · asked by Anonymous in Business & Finance ➔ Other - Business & Finance
You mentioned that the company can create new stock, but without modifying the company valuation this would decrease the value of the stock owned by current shareholders. How does that work?
2007-12-04 16:36:19 · update #1
No, the question refers to the company being a shareholder, like in buy back situations. If a company has 1000 shares and there is 1 owner, then that owner wants to sell 20% of his stock to a second owner you would end up having 800 and 200. What happens if a third person comes in? Do the owners have to sell shares to that third person from their own stock or should a company own its own stock?
2007-12-04 19:51:43 · update #2
People start companies. Every company is owned by someone. Sometimes privately held companies are owned by one person, or one family, or a small group of people. Sometimes private companies give or sell stock to employees.
When a stock goes public, the owners can sell some of their stock and/or the company can create new stock for sale.
The most common situation is that the founding members of the company are the owners, and they sell their stock at the initial public offering.
2007-12-04 16:19:24 · answer #1 · answered by hottotrot1_usa 7 · 0⤊ 0⤋
In a LLC the ownership of the memberships is protected info so the actual Owner maybe impossable to find out, In a Corp that info is public, Are you just looking to see where the money goes in an IPO situation?
2007-12-05 01:44:04 · answer #2 · answered by martimas77 2 · 0⤊ 0⤋