Conversation

Jesse Powell
@jespow
Question for anyone holding stock. A private company has an offer from an investor to buy shares at X, which the company feels is 10% undervalued. However, the company knows of a shareholder (could be you or someone else) who would sell at a 20% discount. Should the company:
  • tell seller $offer, intro
    16.6%
  • broker midpoint + fees
    12.9%
  • prop buy low, sell high
    24%
  • see results
    46.5%
867 votesFinal results
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Raoul Pal
@RaoulGMI
Secondary always sells at a large discount as it doesn't offer new capital to the firm so removed a net source of needed capital.
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De Flandres
@Pacifica2525
The seller is willing to dump at a 20% discount. The company thinks their stock is 10% under-valued. Therefore, the company should buy the stock from the seller and hodl, since they would then have a marginal inherent profit in the deal, if the stock is indeed 10% under-valued.
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