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Ask HN: How does the secondary equity market work?

20 pointsby pog92over 3 years ago
I invested in some startups through an equity crowdfunding platform.<p>For some of them I&#x27;m happy of the investments while for others I&#x27;d prefer to liquidate my equities (even at slight loss) because I&#x27;m no longer interested in the project or believing in it.<p>I&#x27;ve seen that they offer a secondary equity market where you can find buyers and sell your equities.<p>How does it work? Are there any fees (legal, bureaucratic, fiscal) etc that I should consider?

1 comment

Bostonianover 3 years ago
Likely the major &quot;fee&quot; is due to illiquidity. You may need to accept a substantial discount to fair market value to sell a startup position, although even defining FMV is difficult when there are no trades.