75
votes
Accepted
Am I a billionaire if a friend gives me $1000 for 0.0001% of my "company"?
The unspoken point behind your question is that people often talk about the value of companies in terms of their market capitalisation which is the price of one share times the number of shares. This ...
- 27.9k
65
votes
Accepted
"Marked down as someone wanting to sell shares." What does that mean?
Private companies don't have liquid secondary markets. There are no identified buyers of your shares. The next time there's a fund raising round at the company they will include some or all of your ...
- 49k
62
votes
Accepted
If he wanted control of the company, why didn't Elon Musk buy 51% of Twitter shares instead of 100%?
Summary: Twitter's board had good reason not to let Musk do this, and had tools to prevent him from doing it.
The board of a corporation has a fiduciary duty to preserve the value of all shareholders, ...
- 762
54
votes
Accepted
Ram Solutions Group, genuine or scammer?
Things to look for:
They contacted you first. You always have to ask yourself how they came by your contact. If they have a really good product, they would not have to SPAM to sell it. Clarification, ...
- 5,316
45
votes
Am I a billionaire if a friend gives me $1000 for 0.0001% of my "company"?
The term "billionaire" is not a legal or technical term; it can mean whatever you want it to mean. Most people would define it as someone who owns at least $1 billion in assets.
If you own ...
- 115k
44
votes
Accepted
Why is it reported as news that a company has "raised money"?
Companies raise money so they can spend it, by and large. So the first thing this tells you is that the company (upGrad in your example) will have some money to spend. It might be able to hire more ...
- 12.7k
40
votes
How can I sell my shares in a privately-owned company I used to be employed by?
No, private companies have no obligation to help you sell their
shares.
It may not be legal, but there is very little you can do short of suing the company. Great article about this from the Wall ...
- 15.7k
38
votes
Accepted
Can a company with a very large valuation still be held privately?
Is this scenario practically possible?
Absolutely - there is no legal requirement in the US to become publicly traded.
Are there any examples?
The top 25 private US companies all have annual ...
- 131k
26
votes
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?
$1000 is definitely 0.0001% of $1Bn. You'd be a billionaire IF:
you own the other ...
- 50.6k
24
votes
How can I sell my shares in a privately-owned company I used to be employed by?
The company going public is probably your best chance of being able to sell your shares. Therefore, your first job should probably be to try and see if there are any indicators that this might still ...
- 9,105
23
votes
Why would a company prevent their employees from selling their pre-IPO equity?
One reason for a Private company to restrict the number of shareholders is that is there are additional SEC reporting compliance requirements once you exceed the threshold of 2,000 shareholders / 500 ...
- 2,702
23
votes
Accepted
What are my rights as a small investor in private equity, and what can I do about the company not responding to me?
You have a right to turn up at the AGM (and any special general meetings), and ask questions there. Otherwise, they are free to ignore you.
They are unlikely to give information about the business' ...
- 9,781
20
votes
If he wanted control of the company, why didn't Elon Musk buy 51% of Twitter shares instead of 100%?
The goal was to make the company private.
They don't have to file quarterly reports with the SEC.
They don't have to report the profitability of the company to the public.
If they have a bad quarter ...
- 136k
19
votes
Ram Solutions Group, genuine or scammer?
I have received non-scam emails containing an offer to buy my shares, but (1) they were from the bank that manages my shares, and (2) it was in reaction to a public offer for those shares. So it was a ...
- 2,743
17
votes
Accepted
Do pension pots get interest?
There are two main types of pensions to consider in answering your question:
(1) Defined Benefit pension plan. This type is the 'traditional' pension plan. It means that when you retire, you get a ...
- 42k
17
votes
Can a company with a very large valuation still be held privately?
Twitter/X
Not only can companies remain privately held throughout their lives, they can also go public and then revert to private ownership, as in the recent case of Twitter.
This list of other large ...
- 1,369
16
votes
How can one go short in Uber?
The answer to this question is related to another question:
How would I invest in Uber?
Given that Uber is a privately-held company, the average investor cannot directly buy stock. However, there ...
- 115k
14
votes
Accepted
Why is it ever a good idea to found a company?
There are a few common errors you are making in your statement. Before I try to address what I see as problems with your line of thinking, take my overall response to the headline of your question as ...
- 42k
12
votes
Can a company with a very large valuation still be held privately?
And then there's even the extreme case of Dyson, which is reported to be 100% owned by a single person, founder James Dyson.
The company made $7.8 billion in 2022. Since it is private the valuation is ...
- 3,942
11
votes
Accepted
Is it possible to make money off of a private company?
Yes, but only if they're looking for investors. You would need to contact them directly. Unless you're looking to invest a significant sum, they may not be interested in speaking with you. (Think at ...
- 13.8k
11
votes
Why would a company prevent their employees from selling their pre-IPO equity?
Typical IPOs tend to have a lock-up period which prevents insiders (founders, employees, venture capitalists) from selling their shares for some amount of time after the IPO. The waiting period tends ...
- 75.8k
11
votes
Am I a billionaire if a friend gives me $1000 for 0.0001% of my "company"?
tl;dr– Someone has a strong claim to billionaire-status if they have immediate ownership/control of at least a billion-USD and no debts/liabilities. Others might claim billionaire-status with ...
- 346
10
votes
How can I sell my shares in a privately-owned company I used to be employed by?
In general, shares in a private company aren't worth anything. (Unless the company is paying dividends or they give voting privileges or something.) There's no good way to convert them into cash ...
- 4,343
10
votes
Can a company with a very large valuation still be held privately?
In the US, at least, there is no requirement to take a company public.
Remember that the reason for selling stock is to turn part of the company's value into money. If the company is profitable enough ...
- 43k
9
votes
Accepted
Understanding my company's liabilities
Ask your accountant for a profit and loss statement for the current year. What you're showing us is is a balance sheet. You can't infer taxes from a balance sheet but you can from a profit and loss ...
- 273
7
votes
How should I inject working capital into my company?
would this be a loan to my company?
Yes, or alternatively the company could issue out some new shares increasing your holding in the company over your partners. Another alternative would be that ...
- 49k
7
votes
To what extent are companies' owners not responsible to pay back money that they waste?
A small business' bank loans and credit cards all require a personal guarantee by the owner, in addition to the business' promise to pay.
Large businesses can get a loan with no personal guarantee. In ...
6
votes
Accepted
If I have equity in a company, can I receive passive income from it?
No. Some profits could (and should) go to retained earnings.
You will only received income when it is distributed to shareholders. It happens when the owners decide it should happen.
Keep in ...
- 76.1k
6
votes
Accepted
Does setting up a company for your own improves credibility?
The key here is that you are defacto running your own company no matter if you acknowledge it or not. In the end these questions have the goal of deciding if you can and will repay the loan. ...
- 76.1k
6
votes
Is money invested in a company owned by the company?
If X initially has full ownership and control of the company, then it is X's choice what is done with the company's stock and assets. There may be tax and accounting rules and consequences, but ...
- 29.4k
Only top scored, non community-wiki answers of a minimum length are eligible