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And when they exercise that right, they'd be able to buy them back at the strike price?
by arjie 10y ago
And when they exercise that right, they'd be able to buy them back at the strike price?
- bofia 10y agoNo, they would buy it back at the price that the buyer had offered. In your example, $10000 for the 15000 units.
- arjie 10y agoOh, so secondary markets are still beneficial to participate in if permitted. So this guy should participate if he can. But you work with the original company, etc., I suppose. Makes sense.
- shirleman 10y agoYes. ROFR (right of first refusal) are almost always at the price of the shares purchased. This prevents people from just selling their shares on secondary markets without company permission. I don't love it but you are correct, that is how it works