Transaction Disclosure

What actually happens between agreeing a price and owning the shares. It is worth reading because the middle of it is where transfers fail.

The path a transfer takes

Origination. A shareholder lists a holding whose ownership has been verified, or a company sponsors a liquidity event.
Offer and negotiation. A verified investor makes an offer. Either side may counter. Nothing is binding until terms are accepted.
Compliance. Identity, accreditation and financial-crime checks must be current for both sides.
Issuer approval. The company is asked to consent. It may approve, refuse, or exercise a right of first refusal.
Documentation. Transfer documents are executed by both parties.
Settlement. Funds and shares are exchanged and the company's share register is updated.

Where it can stop

A transfer can fail at any stage before settlement. The most common reasons are the issuer refusing consent, the issuer exercising its right of first refusal, a verification expiring mid-transaction, or one side simply withdrawing before documents are signed. Reaching agreement on price does not make a transfer certain.

Right of first refusal

Many private companies hold the right to buy shares themselves on whatever terms a shareholder has agreed with somebody else. If it is exercised, the sale completes at your price but the company is the buyer. This is normal in private markets and is not a sign anything has gone wrong.

Timing

Approval windows are set by each company and are measured in weeks rather than days. A transfer that looks agreed can sit waiting on an issuer for a substantial period, and neither party can compel a faster answer.

Ownership

You do not own the shares until settlement completes and the company's register is updated. An accepted offer is not ownership, and neither is a signed document.

Status of this platform

EquityFlowX is not a registered broker-dealer or alternative trading system, does not provide investment advice, and holds no customer funds.