Value of shares
I was wondering say you own a private electric company and you own 10% if the company goes public do you still own 10% of the publicly traded shares?
I was wondering say you own a private electric company and you own 10% if the company goes public do you still own 10% of the publicly traded shares?
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It depends on whether the IPO involves an issue of additional common shares by the company. If so, then there's share dilution and of course you don't own 10% of the publicly traded shares.
I should also mention that most times, even if there is no additional issue of common shares, firms rarely offer 100% of the firm to public investors. So...the answer you will get is no.
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