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

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

Who is a superuser?

A superuser is a person who creates an account on Eqvista. This person can either be the founder, director, or even the admin for your company, although it is advised that it should always be the founder. The superuser has control over all the actions that take place on the company profile on Eqvista. They … Continued

Electronic Shareholder Acceptance

One of the features of the Eqvista app is Electronic Shareholder Acceptance. When you issue equity grants, options, and warrants to shareholders, there will be an electronic acceptance for shareholders to sign (electronically) for the issuance to take place. Note: You will need to add the shareholder profile before you can begin the issuance process … Continued

What is Eqvista – Introduction

Every company requires the need to issue shares at some point in the business. When a company issues shares to a person or legal entity, the company is legally issuing new shares to offer ownership to a new shareholder. This person can be the founder of the company, a shareholder, an investor, an employee, a … 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!