Are private companies share price for preferred shares or common shares?

Amazon
banmepls

Go to company page Amazon

banmepls
Nov 13, 2021 5 Comments

If a company says their shares are $X, that's their preferred share price right? How does that work if I get common shares?

@Databricks @Snowflake @Airbnb @Pinterest

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TOP 5 Comments
  • Typically yes and your common shares are not worth as much since they don’t have the same downside protection.
    Nov 13, 2021 2
  • Airbnb
    qioazxc

    Go to company page Airbnb

    qioazxc
    It’s based on 409a, it’s evaluated by a 3rd party company so it’s close the fair price if it goes public. When company goes public, they will use their 409a as a reference, so it’s always transparent.

    The company knows how many shares they release, and they know the valuation of the company, that’s how they come up the price per share
    Nov 13, 2021 1
    • Airbnb
      qioazxc

      Go to company page Airbnb

      qioazxc
      You should be able to ask the recruiter the valuation they use to come up the share price and you can decide if that’s fair
      Nov 13, 2021