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Can you sell your shares of a corporation any time you want?

By Christopher Green |

For all practical purposes, unless you are lucky enough to hold restricted stock as an executive of a big company, you can sell your stock at any time the markets are open and there’s a willing buyer.

Can a company force me to sell my shares?

The answer is usually no, but there are vital exceptions. Shareholders have an ownership interest in the company whose stock they own, and companies can’t generally take away that ownership. The two most common are when a company gets acquired and when it has an agreement among shareholders calling for forced sales.

Can a majority shareholder be forced to sell shares?

If we can’t come to an agreement, there’s no simple way to compel the minority shareholder to sell. In general, the majority shareholder will need to address the minority’s reasons for refusing to sell, convincing the minority to accept a fair value for their shares.

When do you need to sell shares of a corporation?

A partial sale can be done to raise capital, start a transition, or provide incentives to employees. In a partial sale, you will want to make sure you retain enough stock to be the majority shareholder. If you need help with selling shares of a corporation, you can post your legal need on UpCounsel’s marketplace.

Can a company list private shares of stock?

With private shares of stock, there’s no listing of any information on the stock and no share price to list as well. Also, private shares of stock can’t be sold unless a green light is given by the company’s high echelon decision-makers, who may not want the stock sold to company outsiders.

How does a Corporation decide how many shares to issue?

Decide how many shares to issue. Technically, the number of shares your corporation can issue is listed in your articles of incorporation. If you want to issue more shares than that number allows, you can file an amendment to your articles to change it. Please note that most states charge a nominal fee to amend your articles.

How can I Sell my stock in my company?

For publicly traded shares, this process is simple: an employee can just sell the shares through a broker. Private shares, on the other hand, cannot be sold as easily. Because private shares represent a stake in a company that is not listed on any exchange, finding a buyer may be difficult.