My wife worked for an accounting firm for about 10 years in the 90s. They issued private shares to the employees and my wife ended up with about $20,000 worth of shares at the time. She has since left the company and moved on but kept the shares.
My questions are...
1. I was always under the impression private stock is basically worthless unless a company goes public. If a person owns 1% of all the private shares out there does that mean they get 1% of the sales price if the company is bought out?
2. Can the private company just value my wife's shares at a penny and basically get them off their books or do they have to assign all shares the same value?
3. If my wife has 10 shares and they initially released 1,000 shares... Can they keep releasing more shares thereby dilluting the value of those inital 10 shares?
4. If they want to buy back the shares does my wife have any right to see their financial information before she sells?
The company she worked for is in California if that makes a difference.
My questions are...
1. I was always under the impression private stock is basically worthless unless a company goes public. If a person owns 1% of all the private shares out there does that mean they get 1% of the sales price if the company is bought out?
2. Can the private company just value my wife's shares at a penny and basically get them off their books or do they have to assign all shares the same value?
3. If my wife has 10 shares and they initially released 1,000 shares... Can they keep releasing more shares thereby dilluting the value of those inital 10 shares?
4. If they want to buy back the shares does my wife have any right to see their financial information before she sells?
The company she worked for is in California if that makes a difference.
