3 ms·
Don’t most private companies require board approval for secondaries? I wonder what you’d actually be buying here.
by kdamica 3y ago
Don’t most private companies require board approval for secondaries? I wonder what you’d actually be buying here.
- peter422 3y agoThis is generally the case for common stock but not preferred shares (such as you'd get from being an angel), though it obviously depends company to company.
- tschwimmer 3y agoIt depends on the shareholder agreement, but many do. However, many of these secondary markets facilitate private market transactions via a forward contract which is sort of like long dated put option.
- nocoiner 3y agoAh, interesting. I think this might answer a question I posted elsewhere in the thread.
- deleted 3y ago[deleted]
- SCM-Enthusiast 3y agoforward contracts and long dated push options differ in their obligations. Put options gives the buyer the right exercise, but in forward contracts they both are by a specific date. I assume they would only trigger shareholder approve prior to them being exercised not collateralized in the form of the option.
- yieldcrv 3y agoeasily circumventable with trusts and other contracts