Prior to selling shares in a private company, an investor must first determine what type of stock is held (i.e., preferred versus common), then refer to the company bylaws (specifically, a section ...

A private company, on the other hand, is not listed on a stock exchange, making it more difficult to become a shareholder. What kinds of private companies are there?

Private company stock includes shares issued by the company to employees or investors. For example, startups often use equity to compensate employees during the early stages when cash flow is limited.

Stockholders in many private companies are increasingly participating in “liquidity rounds," also known as secondary sales, where they sell shares of stock for cash before the company goes public.

If your company had earnings of $2 per share, you would multiply it by 15 and would get a share price of $30 per share. If you own 10,000 shares, your equity stake would be worth approximately ...