If you buy out all the outstanding shares of a pink sheet listed company, do you control the company (much like when an NYSE-listed stock is bought out)?

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    Be sure you understand total shares vs shares outstanding. Total float may be 100 million, but only 10 million are trading. – JTP - Apologise to Monica Jul 11 '13 at 20:28
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    only need to own over 50% – CQM Jul 11 '13 at 20:58
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    @CQM ... of the voting shares. – Chris W. Rea Jul 11 '13 at 21:08

Depends on the structure of the company and what shares are outstanding. If the pink sheet stock has no voting power then buying all that stock doesn't get you any control at all. On the other hand, if the outstanding shares only represent 20% of the company's overall shares, then buying all the shares isn't likely enough to have a controlling interest.

Thus, you'll have to dig into the details. If you want an example of where I'd have my doubts, look at Nestle's stock which has the ticker of NSRGY. There can be companies that are structured with stock on multiple exchanges that can also be a challenge at times. There is also something to be said if you own enough stock in a company that this has to be disclosed to the SEC when you buy more.

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  • Nestle is a good example, since it's not an American company, so you'll run into regulatory issues in multiple national jurisdictions. – John Bensin Jul 12 '13 at 2:21

Sure. No-one promises that all the outstanding stocks are ever for sale, but if you get them all - you get them all, what marketplace you used for that doesn't really matter.

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I suggest you contact head of the company your are interested in, ask if he or she owns a controlling interest. If so offer to buy him out.

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