The problem is if the company never gets sold: a minority shareholding in a private company is next to worthless so it is imperative to have an exit route planned by the majority shareholder.
Yes unless more shares had been offered and issued and you did not purchase more shares to keep your total as 1% of the shares outstanding.
It's a simplistic example but in theory you are correct.
There are a few app makers who hit it big, but most don't actually do so well.
Hi
My friend has started up a company and is currently developing an iPhone app. The app has potential to do well. If I bought shares in his company say I bought 1% worth of his company and in a few years time he sold the company, would I get 1% of the selling price?
Thanks
