Redemption provisions provide minority investors the ability to demand a buy out so that they are not locked into a minority investment in a closely held company forever

Question

Quizplus · Accepted Answer

Redemption provisions allow minority investors to sell their shares back to the company, providing an exit strategy and preventing them from being indefinitely tied to a minority stake in a closely held company.

Redemption Provisions Provide Minority Investors the Ability to Demand a Buy