I've got options to exercise "in the money" by March. However, I would like to sell part of the stock I will buy. The company is not publicly traded. In the agreement I've got the right to sell to thirdparty, but current holders have right to buy before. However, they do not want to buy right now, hence I want to find a buyer. How do I sell these kinds of stock? I need to find a buyer, but where? And how? Are there any kind of broker services for this?
You have some options, but based on your comments this might be quite difficult.
- Sell the shares back to the company
- Sell the shares to another investor
- Sell the shares on a private-securities market
- Get your company to do an IPO
- Buy less stock
In all cases, ensure you comply with SEC requirements, if they apply to you and/or your company.
If you choose to sell third party, keep the following in mind:
To comply with SEC regulations, a company must be willing to provide substantive disclosures to potential investors, including certain financial statements as well as other non-financial information.
If the company isn't willing to do so, then you can only sell to what the SEC calls an accredited investor. This includes directors or executive officers of the company, as well as any individual with a net worth of more than $1 million or annual income of $200,000 or more for individuals or $300,000 or more for couples in each of the past two years.
If you have the option to buy less stock to meet your needs, that seems like the best option from my perspective.
Brokers could help you do it, but commissions are quite large, up to 10pc. Also you can post it somewhere on investor forums like 'smart-lab'.