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If a company valued by BOD at $1M that has authorized 1

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million shares and founders have...
If a company valued by BOD at $1M that has authorized 1 million shares and founders have 300,000 issued shares, how many shares must be issued to someone investing $400,000 to provide him with 20% ownership?
Submitted: 2 years ago.Category: Business Law
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Answered in 16 hours by:
10/16/2015
Business Lawyer: Richard - Bizlaw, Attorney replied 2 years ago
Richard - Bizlaw
Category: Business Law
Satisfied Customers: 10,687
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Hello, my name is ***** ***** I will try to help you. Please remember I just report or interpret the law, so the outcome may not be what you hoped for.

Based on your post the new investor would not get the full value of his investment. For the new investor to get 20%, the totlal number of shares outstanding would be 375,000 and the new investor would get 75,000 shares. This would be about 9.6% less than the value added.

If I have answered all your questions, please positively rate my answer as that is how I receive credit. If you have more questions, please let me know. If the answer was especially helpful you can provide a bonus.

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Business Lawyer: Richard - Bizlaw, Attorney replied 2 years ago

FYI to get the full value of the investment, the new investor would get 29.57% or a total of 119,992 shares.

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