Anonymous asked in Business & FinanceInvesting · 1 decade ago

Where to sell my private Stock Options?

I have 150,000 shares of a large company in Orlando Florida. They produce online insurance claim software. Its subscription base and they are growing rapidly and rarely loose any accounts.This year they made the INC 5000 in the 1700 range. After I was issued my stock options I choose to leave the company to start my own business in a different industry. The company is private but very profitable and growing, even in this down turned economy. Im looking to sell my stock to raise capital for my new business but not sure how to find buyers.

How would I go about advertising my stock for sale? Is there laws that say how I can advertise my stock for sale since its private stock. Are there brokers that will try to sell private stock? My strike price was $1.15 and Im looking to sell it for 2.00 a share which is extremely reasonable for any buyer just not sure how to find a buyer.

I understand that the best way is to sell it back to the company or to the investors. The management team just bought out one of the investors. The investor was looking to retire. So at this time they are not looking to buy shares.

Is there a legal way (and Im not sure if there is even a law concerning this) to advertise the stock, are there brokers that sell stock like this, are there rules when advertising to sell stock like this?

3 Answers

  • Anonymous
    1 decade ago
    Favorite Answer

    You better read the entire stock option agreement. There is likely some significant restriction on who you can sell to. If you are on good terms with the company management and they are sure they do not want them, ask if you can offer these to existing employees who may not now be shareholders. Other choices are likely restricted by the option paperwork. You may have (or have missed) an opportunity to force a sale because they bought out the other investor. Usually these kind of agreements have buy/sell clauses. You REALLY need to read the entire option agreement from stem to stern.

    I would NOT advertise these in any way. You could try approaching a company like Raymond James, or else a VC firm in Florida. But again, this is usually restricted in the option agreement, and you may need prior approval to talk with anyone not an existing shareholder.

    Also, your strike price has NOTHING to do with the value of these options, so I am not sure why you picked $2 a share. You may want to re-evaluate that.

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  • Anonymous
    1 decade ago

    The company may not allow the transfer of shares (or options). Best bet is to tell the company you want to sell and wait til they get a buyer.

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  • 1 decade ago

    One way around this is to exercise the options and buy the stock (A broker MIGHT lend you money to do this) then sell the stock.

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