How is the price per share calculated?

Initial Share Pricing for IPO Properties: The initial price per share for IPO properties (properties in primary) is determined by dividing the maximum offering amount by the total number of shares available in the initial offering. For instance, if there are 10,000 shares in the initial series offering, the price per share is calculated accordingly.

Post-Offering Share Pricing: After the new offering is sold, the share price is set to the lowest sell offer price currently available. This price fluctuates based on the selling orders available and may not accurately represent the true value of the property's shares.

Example of Share Pricing: Consider a scenario where 100 shares of Series 123 Main Street are offered at varying prices:

  • 20 shares at $3 per share
  • 40 shares at $5 per share
  • 30 shares at $8 per share
  • 10 shares at $15 per share

In this case, the share price is determined based on the lowest-priced shares, resulting in a displayed price of $3.00 per share.

Understanding Historical Price Per Share: When reviewing the historical price per share of a property in the secondary market, it is important to note that the charts reflect the price per share of the most recent transaction as recorded at the end of the trading day.