The public company's shares are purchased at a premium by the investors buying the company when a publicly traded company becomes a privately held company. The company is delisted from the stock exchange where its shares were formerly traded. Shares can no longer be traded publicly.<\/p>" } } , { "@type": "Question", "name": "What Happens to Shareholders When a Company Goes Private?", "acceptedAnswer": { "@type": "Answer", "text": "
Shareholders agree to accept the offer to be bought out by investors. They give up ownership in the company in exchange for a premium price that's paid for each share they own. They can no longer buy shares in the company through a broker.<\/p>" } } , { "@type": "Question", "name": "What Happens to Private Shares When a Company Goes Public?", "acceptedAnswer": { "@type": "Answer", "text": "
Private shares owned before the IPO may gain in value when a private company goes public through an initial public offering (IPO). They usually can't be sold for a specific time beginning on the day of the IPO, however. This period is known as the lockup period and it may last 180 days.<\/span><\/p>"
}
}
]
} ] }
]