One contemporary view requires at least 51% of the company’s assets to be illiquid before its shares are freely negotiable. The reasoning is that if the majority of assets are real/non-cash assets, the share may be treated primarily as an ownership interest in those assets.
This approach uses the principle that the majority can determine the character of the whole.
Opening interactive controls...
Equity Investment: When Are Shares Tradable?
One contemporary view requires at least 51% of the company’s assets to be illiquid before its shares are freely negotiable. The reasoning is that if the majority of assets are real/non-cash assets, the share may be treated primarily as an ownership interest in those assets.
This approach uses the principle that the majority can determine the character of the whole.