my brain is fried- can someone gimme a very basic example of what this is?
Investors want to sell their stake in the company. If they do, management has the option to sell their shares at the same price.
^also allowed for purchases.
sell/purchase price SAME for everybody…how cool is that…
The name pretty much says it. If investors are selling, management can “tag along” with the sale price. It can also make management sell. If investors are selling and the acquirer wants 100% of the company, management can be “dragged along” and forced to sell their shares as well.
it’s also a plus to management, it gives them the right to buy shares back from the investors