Eqvista has always worked towards bettering the customer experience. Fractional ownership is one such thing that Eqvista now supports. Whether you are a C-Corp, a private equity fund, or an LLC, you can now deal with your fractional shares on Eqvista. Fractional shares are a portion of a share that is less than a full share. Fractional share offers are upheld up to 8 decimal places. These types of shares are a result of a DRIPS, capital gains, or similar cooperation action.

Given below is a detailed explanation of a major way that results in the formation of fractional shares. 

Mergers and acquisitions (M&A)

During a merger or acquisition, common stock is regularly joined utilizing a transformation ratio. The outcome might leave investors with fractional shares. Supporting fractional shares guarantees that no partners miss out on a piece of their stock during these occasions.

This is one of the major reasons why one can result in fractional shares. There are some firms that will split the whole share intentionally. This way they aim to sell the fractional shares to the customers. This type of share division is a common case with high-priced stock. An example of this will be Amazon, google’s parent company, etc.

Given below is an example of what fractional ownership looks like:

Equity Grant Details

Given below is what your cap table will look like once you have fractional ownership.

Cap table fractional ownership

Eqvista can assist you in easily issuing a fractional share. Not only this, Eqvista can assist you with business valuation and tons of other services.

How to issue fractional shares on Eqvista?

Eqvista has always worked towards bettering the customer experience. Fractional ownership is one such thing that Eqvista now supports. Whether you are a C-Corp, a private equity fund, or an LLC, you can now deal with your fractional shares on Eqvista. Fractional shares are a portion of a share that is less than a full … Continued

Filling out startup valuation questionnaire

We understand that it is so challenging to evaluate early phase organizations, scaleups, or new businesses. That’s why we have made a startup valuation calculator to easily give you a valuation for your startup instantly. After you have filled up the required information about your company and made the payment for a startup valuation, a … Continued

How to issue and record phantom stocks on Eqvista

Many organizations offer their senior-level representatives with additional company benefits alongside their salaries. These advantages typically include employee compensation for the type of company stock. There are a ton of employee equity plans that are used such as ESOPs, phantom stock, and stock options. Among these plans, phantom stock is viewed as an extraordinary method … Continued

How to issue preferred shares on Eqvista?

Preferred equity is an equity investment that has preference over common equity for cash flow distributions. The preferred equity is positioned between the senior debt and common equity in a real estate investment. This means that the distribution and return of capital to preferred equity holders’ investments are subordinate to the senior debt, and still … Continued

Spreadsheet view- Table for shareholders

Managing shareholders, common equity, cap tables and company filings is much easier and efficient with Eqvista. You can manage all of your equity in one place without any trouble.  With the new Spreadsheet feature, users can now manage large volumes of data (shareholders, stocks, grants, etc.), in a similar way to Excel spreadsheets. You can … Continued

Interested in issuing & managing shares?

If you want to start issuing and managing shares, Try out our Eqvista App, it is free and all online!