Capitalism 2 and Capitalism Lab Forum

I have a subsidiary which i started, I didnt go for a IPO but i frequently issued shares to the parent company and pumped capital in the company as a result the subsidiary became giant then i went for acquisitions n merger without getting it listed on stock exchange which resulted in reducing my holding in the pvt held co, and as a result somehow i lost control of the subsidiary resulting in me as parent co holding only 31.5% shares in the pvt held closed co but it was of no use as i am not able to offload these shares, although my networth has risen up as in the balance sheet under assets its showing under stock held.. I am sure in the real world this doesnt happen, just because i hold shares of pvt lt co doesn't mean it does not hold any value, kindly get a update or new version for this to be useful...

Tusharsaboo302 wrote:I have a subsidiary which i started, I didnt go for a IPO but i frequently issued shares to the parent company and pumped capital in the company as a result the subsidiary became giant then i went for acquisitions n merger without getting it listed on stock exchange which resulted in reducing my holding in the pvt held co, and as a result somehow i lost control of the subsidiary resulting in me as parent co holding only 31.5% shares in the pvt held closed co but it was of no use as i am not able to offload these shares, although my networth has risen up as in the balance sheet under assets its showing under stock held.. I am sure in the real world this doesnt happen, just because i hold shares of pvt lt co doesn't mean it does not hold any value, kindly get a update or new version for this to be useful...

I think this only happens if the private sub merger with others with issuing share options. If using issuing cash merger, this won't happen. But I agree, the option for private corp issuing share during merger shouldn't exist in the first place if its not IPO, since it shouldn't have "general public shareholders".