A company can start trading on HighCastle in a number of ways. We can list existing assets, allow companies to sell bonds, raise a funding round selling equity.
No matter how a company starts trading on HighCastle, the investments will be made into tradable tokens that investors can buy and sell on our marketplace. These tokens represent a value in the market, for instance, a company who initially raises €100.000 will give investors 100.000 tokens, each representing €1 of the initial investment. Token holders can then chose to sell some or all of their tokens, and they can set them for sale, at whatever price they want.
If they try to sell their tokens at 10 times the price, it might take some time before anyone is willing to buy. In the same way, if someone tries to buy tokens at more or less the same price as investors have bought them at, it’s unlikely that they are willing to sell.