An exit for investors is an event that allows the investors to get their money (or some of their money) back. For example, when a company makes an IPO, the existing investors may be able to sell all their shares in the same public marketplace. However, if the stock is not publicly traded, the investor will need an event such as a private sale of the investment in order to recover the investment. In general, an investor cannot exit an investment and recoup his gains (or losses) unless there is a marketplace where such investments can legally be offered and sold (and these are rare for small holdings of securities) or another investor (such as a VC group) offers to buy the securities.
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