Questions tagged [private-company]

A private company is a company held under private ownership with shares that are not traded publicly on exchanges.

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57 votes
5 answers
17k views

How can I sell my shares in a privately-owned company I used to be employed by?

Basically, I was a software developer at a company and I was issued some stock options early on, before the company grew significantly. The company then hired a CEO who pledged to take the company ...
user2302909's user avatar
47 votes
9 answers
18k views

Am I a billionaire if a friend gives me $1000 for 0.0001% of my "company"?

If my friend gives me a thousand dollars for 0.0001% of my "company", am I technically a Billionaire now?
Aditya_math's user avatar
41 votes
2 answers
14k views

If he wanted control of the company, why didn't Elon Musk buy 51% of Twitter shares instead of 100%? [closed]

This might be a simple question but the answer escapes me. Elon Musk wanted full control of Twitter, so he bought every outstanding share and made the company private. Couldn't he have achieved the ...
Martín Fixman's user avatar
37 votes
1 answer
9k views

"Marked down as someone wanting to sell shares." What does that mean?

A few years ago I and a few friends created a company based on the web. During the raising funds period, we got a plan for $500,000 for 20% and we got investors. The last news about investors that I ...
Uncoke's user avatar
  • 489
19 votes
1 answer
6k views

Why is it reported as news that a company has "raised money"?

For example, it's been reported that upGrad raised 120 million from Temasek. What does this really mean? Why would a education company want to raise money from another investment company? What is the ...
Rajorshi Koyal's user avatar
18 votes
2 answers
7k views

Ram Solutions Group, genuine or scammer?

I have received an email from RAM SOLUTIONS GROUP offering to buy my shares at a higher price than I paid. How do I check this company is genuine?
Charles's user avatar
  • 183
15 votes
7 answers
4k views

Why would a company prevent their employees from selling their pre-IPO equity?

I have heard and read that some non-publicly traded companies prevent their employees from selling their pre-IPO equity. Why would they have such a policy? For example, from How to Sell Private ...
Franck Dernoncourt's user avatar
15 votes
2 answers
2k views

What are my rights as a small investor in private equity, and what can I do about the company not responding to me?

I invested a small amount of money into my previous employer's employee stock options program. When I left the company a few years ago, I decided to exercise some options that had already vested. The ...
mxk's user avatar
  • 289
8 votes
2 answers
1k views

How should I inject working capital into my company?

Me and two partners started a company earlier this year. Each of us owns 33.33% of the shares. Right now we are generating enough income to cover our monthly expenses, but we have already signed new ...
joe's user avatar
  • 81
8 votes
1 answer
266 views

Regulations regarding investing in a private business

There have been a couple of years where, after maxing out contributions to retirement accounts, I've had some disposable money left over that I'd like to invest in something other than publicly traded ...
LastAirbender's user avatar
7 votes
7 answers
6k views

Can a company with a very large valuation still be held privately?

We see many companies with extremely high valuations like Microsoft, Google, Amazon etc. All these companies are held publicly. (Although the founder might be holding a large portion of the shares; I ...
Aastik's user avatar
  • 727
7 votes
8 answers
1k views

Why is it ever a good idea to found a company?

I have a side project with a few friends that's gradually getting more serious. We're nearly at the stage where we'll be taking some early clients, which is really exciting after about a year of ...
Anthony's user avatar
  • 83
6 votes
1 answer
803 views

Can a Croatian citizen start a company in Ireland, to reduce income taxes?

I'm a software developer freelancer with Croatian citizenship, and I need to start a company in order to pay income tax. It's my understanding that my home country will incur 20-40% tax based on my ...
The Onin's user avatar
  • 171
5 votes
4 answers
2k views

Do pension pots get interest? [closed]

Pension pot is the money, the employee and sometimes the employer and the government pay that gets accumulated into pension fund. But my question is, that this pension fund is basically a bank ...
Shayan's user avatar
  • 153
5 votes
4 answers
719 views

Should I contribute to my employer's Employee Stock Program (ESPP), and if so how much and only during certain times of the year?

Although it is company-specific, what are your experiences when contributing to ESPP (Employee Stock Program)? More specifically, do you recommend contributing to ESPP in max? Or maybe it is only ...
Tina J's user avatar
  • 435
4 votes
2 answers
751 views

Is it possible to make money off of a private company?

I have been made aware of a UK company that I think will be extremely profitable in the next year or two. It is currently privately held and they compete for market share with Intel and NVidia. Is ...
grldsndrs's user avatar
  • 465
4 votes
1 answer
175 views

Does setting up a company for your own improves credibility?

I have been working as a freelancer for quite a while now. Today, when I am trying to get a car loan, the agency asked me: Are you currently employed and have regular salary? (No) Do you have a ...
kevin's user avatar
  • 909
4 votes
1 answer
157 views

As a shareholder in a private company that was acquired, what's the transaction date for my capital gains?

I'm a common shareholder in a US private company acquired in Nov 2017 by a US public company. I'm planning to wait until Jan 2018 to exchange my shares for cash+stock in the acquirer. (The M&A ...
bugalicious's user avatar
4 votes
1 answer
282 views

Purchase Stock but cannot pay AMT

I was released by my company and I had to purchase my ISO's within 60 days of leaving the company or lose them. The issue is to purchase them would mean around a $1.2m AMT & State Tax Bill next ...
Roger Lammin's user avatar
4 votes
2 answers
220 views

Find buyer for private stock?

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 ...
vidstige's user avatar
  • 141
4 votes
0 answers
110 views

Hostile takeover bid to turn company private - how does it work (current context: Musk / Twitter)?

With regard to the current coverage of Musk announcing his wish to turn Twitter into a private company, I'd appreciate some clarification: Twitter stock, according to Yahoo Finance, is owned by ...
Zubo's user avatar
  • 487
3 votes
3 answers
2k views

Understanding my company's liabilities

I am seeking to close a UK business I own but I am worried about being hit with a huge tax bill. I have been provided a balance sheet which states the following: TOTAL ASSETS LESS CURRENT ...
Paul Ryan's user avatar
3 votes
3 answers
1k views

$10,000 was accidentally transferred to me instead of my company

As a result of a business competition we won for school, $10,000USD was transferred from my University's Accounts Payable department, to me. It should have been transferred to my business, a C-...
unicornication's user avatar
3 votes
1 answer
77 views

Obtaining Private Prospectuses

I am interested in obtaining business model information about private companies. Specifically, I would like to know about things like, areas of growth, short falls, challenges and guidance. How can ...
grldsndrs's user avatar
  • 465
3 votes
1 answer
1k views

Can US private companies issue publicly-traded bonds?

In the United States, can private companies issue publicly-traded bonds? If so, are these bonds usually available to retail investors, or are they restricted to accredited investors? Where do these ...
Flux's user avatar
  • 16.9k
3 votes
1 answer
179 views

How/when to take loss in private company that re-orgs post-Chapter 11 and converts to new/fewer shares?

My wife's company is private. We bought 60 shares x $1k/share 5+ years ago. This past year they (OldCo) went Chapter 11 bankrupt re-emerged from bankruptcy as a new LLC (NewLlc) "There were assets ...
Bill Seitz's user avatar
3 votes
3 answers
946 views

How does investment into a private company work?

My question is inspired by Dragons' Den, an investment TV show in Britain, where an entrepreneur asks investors for money. The entrepreneur (E) goes on the show and says, "I want 100k for 25% of my ...
snoopy's user avatar
  • 33
3 votes
1 answer
91 views

Self Assessment from Abroad due to Private Limited Company Unpaid Directorship

I left the UK for good years ago, but I still have a private limited company there (that I own 100%) and because of that I have to file self assessment which is just a series of zeros in every input ...
Peter's user avatar
  • 161
3 votes
1 answer
318 views

How to buy private company stock using a registered account (e.g. LIRA, RRSP)?

I would like to invest is a private company using money from my LIRA (locked in retirement account). I know this is allowed, similar to holding private mortgages under these accounts, but how do I ...
Matt's user avatar
  • 31
2 votes
2 answers
770 views

How can one go short in Uber?

I believe Uber is massively overvalued and it will face down rounds in the near future. Assuming I can use all financial instruments, how could I short Uber?
Marco Y's user avatar
  • 31
2 votes
3 answers
705 views

Can non-accredited investor remain as a shareholder in private company?

In the US one has to be accredited investor to buy stock in a private company. However, does one still need to be accredited investor in case a public company goes private (i.e. get delisted from ...
user4910112's user avatar
2 votes
2 answers
112 views

Setting up a Limited company online

I am going to set up a Limited Company for myself, as a sole owner. An accountant quoted me a good amount of money to do it. I have seen a number of online companies who say they help you do it for a ...
Freddie's user avatar
  • 21
2 votes
1 answer
165 views

What is a reasonable discount on the share price for a 25% holding?

One party controls 75% of the shares and voting rights of a small private company. The other party controls 25%. The larger party wants to buy out the smaller party to own 100%. The shares were ...
marktristan's user avatar
  • 3,710
2 votes
2 answers
182 views

Is the donation of billable or paid time of a contractor or employee tax-deductible?

In California, USA, for federal and state taxes, are services performed by a paid employee or contractor (who receives compensation for that time from the company as regular/overtime wages/salary or ...
seamux's user avatar
  • 45
2 votes
2 answers
154 views

How can I research some paper shares I found?

I recently found old paper shares, but I couldn't find any information online about the companies. Where to find data, and how? Companies: Tally-Ho Ventures (TLYH), 7500 shares, 2006 May COA ...
Roger R's user avatar
  • 21
2 votes
1 answer
211 views

What are the risks with investing in private real estate funds via Fundrise?

I recently discovered this real estate investment company, Fundrise, and after doing some research, I’m interested in investing with them. But I’m on the fence about the trustworthiness of their ...
Adonis's user avatar
  • 23
2 votes
3 answers
215 views

How is a grant of stock treated from an income tax perspective?

If I go to work for a private company and they give me stock in the company how is that treated from an income perspective? Is the value of the stock just its par value (which can be nominal in a ...
Five Bagger's user avatar
  • 9,775
2 votes
0 answers
62 views

Uk Tax year and limited companies

I want to open a uk private limited company but wondered if there are any advantages to wait a month so it will be registered in the new tax year. I know the financials have to be submitted 12 after ...
ebg11's user avatar
  • 133
2 votes
2 answers
101 views

How does private equity work in a public mutual fund?

For example, I'm invested in FGCKX, which contains SpaceX, Reddit, and Juul equity, and some other companies not publically-traded. How is the day-to-day price determined for these? For a follow-up ...
bitmaker's user avatar
  • 358
1 vote
3 answers
310 views

To what extent are companies' owners not responsible to pay back money that they waste?

I've always been confused by this. Apparently, as I understand it, you can register a company for a small sum of money in Western countries, for example the USA or Sweden, which then become its own &...
Jaquavion C.'s user avatar
1 vote
2 answers
232 views

Funding a company launch

I live in Canada and I'm planning to start a company. My question is not about the Business Plan, the initial funds needed or how to hit the market and make money. I currently have a relatively good ...
mithrop's user avatar
  • 113
1 vote
4 answers
390 views

Is money invested in a company owned by the company?

If someone sells 20% of their company for a $500,000 investment, I assume that means that the investor has a right to 20% of the profits. Would this $500,000 then be owned by the company or by the ...
user avatar
1 vote
1 answer
202 views

If I have equity in a company, can I receive passive income from it?

I'm about to receive equity in a company. Let's say I get 10% ownership. Does that mean that if the company makes $100 in profit every month, they have to give me $10?
bigpotato's user avatar
  • 751
1 vote
2 answers
83 views

Do all US companies have to follow GAAP reporting standards for profits and losses?

Do all US companies have to follow GAAP reporting standards for profits and losses when reporting to the IRS and investors?
RandomJo231's user avatar
1 vote
3 answers
153 views

Private company investment

When someone or a company invests in a startup, does the existing owner take some money from the new investment? For example, if Amazon invested $2 billion in my company, can I take some from it for ...
Richard Blanton's user avatar
1 vote
2 answers
76 views

Tax on dividends from a limited company when a higher rate taxpayer

I am a higher rate taxpayer and want to do some work on the side. I've already secured the work but I am now wondering if I should use a personal company or not. What I do not understand is the tax on ...
s5s's user avatar
  • 113
1 vote
1 answer
2k views

Closing company, what do to with last amount of funds?

So the business is about to be shut down and there is a little bit of funds left over in the business bank account which I do not want/need. According to https://www.gov.uk/strike-off-your-company-...
Imdad's user avatar
  • 111
1 vote
2 answers
222 views

Ownership of shares in a small company

I've been wondering this for a while now: If a small company has 2 shares and person A owns 1 of 2 and person B owns the other 1, what happens to their shares if person C wishes to buy shares. Is it ...
Jordan Savage's user avatar
1 vote
1 answer
158 views

Do I need to pay myself as a director if I also have a full-time job?

I am a director (one of two directors) of a private Ltd. company that carries out web development work. I also have a full-time job during the week but do the web development in the evenings and ...
SierraOscar's user avatar
1 vote
1 answer
147 views

Is there any advantage to owning equity in a company compared to a royalty agreement?

I'm involved with an LLC company that is looking give me a financial-interest in their company to keep me around and ensure my loyalty. Ordinarily they would simply grant me de-jure equity so I ...
Dai's user avatar
  • 1,807