S-Corp Stock value

[blueman]

What is the name of your state? NY

Just a general question: If (say) I own 100 shares of an S-Corp and my stock basis is $10,000. If I sell additional shares (say 100) to a new investor, does that automatically mean that those shares will cost him $10,000 in cash or equipment investment? or can the board of directors decide on any price they choose?

I guess more simply: to what extent is share purchase price flexible??

Thanks .... Blueman

 

[tranquility]

After the original offering, share price will reflect corporate valuation. How much is your corporation worth? What percentage is the person willing to pay? If a person, at arms length, decides he wants to pay a million dollars for 1/2 of a corporation, what's the problem with that?

(If we are not talking about an arm's length transaction, many more facts are needed.)