Handle secondary transaction edge cases

Validate holdings, partial transfers, dates, rights, and corrections.

Last reviewed: 2026-08-25

The seller has insufficient holdings

EqDeal rejects a share or reserve amount above the seller’s corresponding available balance. Review earlier B&S transactions, the selected seller investment, and whether the amount belongs in Shares or Reserves. Do not move an amount between those fields merely to pass validation.

Rights versus issued equity

A contract without issued equity uses a positive percentage of the seller’s current contractual rights. A contract with issued equity uses share and reserve quantities. A rights transaction cannot move the position to a different contract.

Original terms versus a destination contract

Keeping original terms creates or reuses the buyer’s investment in the seller contract and preserves the transferred rights basis. Changing terms requires a different destination contract with a positive post-money valuation; EqDeal uses that valuation to calculate the buyer-side economic basis.

Dates and historical order

The transaction date must be later than the seller contract’s issue date. The seller must also own the position at that point in history. Before backdating, review issuances and all earlier transfers so a later event is not made dependent on an asset that did not yet exist.

Full and partial transfers

Transfer all uses the seller’s available shares and reserves. Transfer part requires the exact quantity or rights percentage. After a partial transfer, the buyer’s transferred amount plus the seller’s remaining amount should reconcile to the original position, subject to valid earlier events.

Buyer identity and treasury

Search for an existing person or institution before adding a buyer. Selecting the company treasury is materially different from selecting an external investor; use it only when the legal transaction actually transfers the position to treasury.

Zero or unusual consideration

Value paid represents the total consideration. If the legal transfer has zero or non-cash consideration, preserve the documentary basis and confirm the intended accounting treatment instead of inventing a nominal price.

Correcting a mistake

Stop dependent activity and inspect the original transaction before deleting, recreating, or recording a reversal. A new opposite-direction transfer is a separate legal event and should not be used only to conceal incorrect source data.