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Investing - public company owned by private company
I have found a small, publically traded company which looks interesting to invest in. Fast growing and all the numbers look good. However, i'm a bit of a beginner at this, and I've discovered one thing I don't really understand.
75% of the shares of the public company are owned by a private company, which in turn is owned by the founders. So that seems to mean they could potentially do whatever they want – stop paying the dividend, or sell the remaining 25% shares to themselves at cut price. Is this a big red flag? Or is it common amongst smaller companies? I've looked on all the investing sites I can think of and can't find any mention of this.
Comments
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In short, it depends.
For many companies, they are majority owned by the founding family and that can bring many benefits too. It's not all potential negative impacts.
What's the name of the public company?"If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes” Warren Buffett
Save £12k in 2025 - #024 £1,450 / £15,000 (9%)1 -
EDILIZIACROBATICA
A rope access company, based in Genoa, traded on euronext growth, Paris
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