Question

A shareholder in a Private Company may sell his or her shares in the stock exchange in the event he/she wants to leave the company.

True

False

Answer 1

False. A shareholder in a private company cannot sell their shares on a stock exchange, as private companies do not have their shares listed on a public stock exchange. To sell shares in a private company, the shareholder typically needs to find a private buyer or follow any specific procedures outlined in the company's shareholder agreement.