What does the original stock mean?

Primitive shares refer to the shares issued when a company is just established, and are usually sold privately to a few investors before the company is established. These investors may be the founders, executives or the earliest supporters of the company. Primitive stocks are usually very scarce because they are not traded on the open market. Owning original shares can bring many benefits, such as huge capital gains after the company goes public.

Primitive shares are usually different from common shares because they are usually sold to a few private investors, who often need to sign confidentiality agreements. Because the number of original shares is small, they usually have significant voting rights in the company's future share financing. This makes the original shareholders often get higher voting rights and greater voice.

Owning original stocks may be an investment opportunity, but you also need to pay attention to risks. As these stocks are not traded in the open market, it is difficult to determine their true value. In addition, it takes several years for the original shares to be converted into common shares after the company goes public. Therefore, investors with original stocks need patience and long-term investment vision.