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Podcast: Investor Connect Podcast
Episode: Startup Funding Espresso – Pricing Secondary Shares
Description: Pricing Secondary Shares Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In selling secondary shares a price must be set. Since the shares are in a private firm there’s no market to review for a list price. Here are some factors to consider in pricing a secondary sale: Are the shares preferred stock or common stock? Preferred stock has preferences such as liquidation preference and takes precedence over common stock. Common stock is the equity type issued to founders and employees. It typically has no special rights bey...