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Global remittances are an important resource for anyone who needs to send money internationally. Global remittances are used to send money to an individual (or group) in another country, commonly to family members abroad. Remittances may be sent in a number of different ways, such through wire transfers, money transfer apps, cash pick-up services, and more recently crypto-related services. Below, we’ll cover how global remittances work, how much they cost, and how you can safely send money around the globe.

What Is a Global Remittance?

A global remittance is a transfer of money from one country to another. According to the Consumer Financial Protection Bureau, the U.S. government considers any electronic transfer of $15 or more from consumers in the U.S. to another country to be a global remittance.^[1]

While the term “global remittance” is often used to describe money that migrants send to family members in their home countries^[2], people make international money transfers for many reasons. For instance, you may need to send a global remittance to make an international purchase, support a loved one traveling aboard, fund international travel or education, or contribute to charitable organizations in other countries.

How Is a Global Remittance Different From a Wire Transfer?

An international wire transfer is a specific type of global remittance. It refers to an electronic payment that moves funds from a bank account in one country to a bank account in another country using the SWIFT network (a system that connects thousands of banks worldwide). Wire transfers are processed individually, verified in real time, and are typically irreversible once completed, which makes it a preferred transfer method for large or time-sensitive transactions.

A global remittance, by contrast, is defined as any type of international money transfer. This includes transfers made via wire transfer, an international ACH transfer (an electronic bank-to-bank transfer made using a network called the Automated Clearing House), or via cash transfer services (like Western Union) or through an online transfer platform. More recently, some groups are beginning to integrate crypto-related services as a means of sending payments across borders.

(Note that SoFi announced plans in June 2025 to introduce a global remittance service transmitting payments through blockchain networks.)

Importance of Global Remittance

Global remittances are an important part of the global economy. They are used by migrant workers to send money to family and friends in their home countries, helping them afford food, shelter, health care, and education. According to the International Fund for Agricultural Development, one in eight people rely on remittances worldwide.^[3] In some low-income countries, remittances make up 30% to 40% of the county’s domestic product (GDP).^[2]

International payments are also crucial to global commerce by facilitating trade between countries and allowing businesses to expand their operations beyond domestic borders. Businesses in the U.S. and throughout the world use global remittances for a wide range of activities, including paying overseas suppliers for goods, compensating international employees, and receiving payments from foreign customers.

How a Global Remittance Works: Step by Step

The process for making an international money transfer varies by method and provider, but this is generally looks like this:

1.    Register with a transfer service. If you’re not using your bank, select a transfer service that meets your needs and create an account. You may be required to verify your identity by providing your driver’s license, passport, or other government-issued ID.

2.    Provide the recipient’s information. Enter specific details about your recipient, such as their name, bank account details, and/or the location where they will pick up the money.

3.    Select the amount you’d like to send. Choose how much money you want to send and in what currency.

4.    Pay for the transfer. You can typically pay by debit card, credit card, or direct transfer from your bank. The total cost typically includes the transfer amount, transfer fee, plus an exchange rate markup (an additional percentage added to the mid-market exchange rate).

5.    Track the transfer. Providers typically give you an expected delivery date and time and a tracking code so you follow the status of your remittance.

Depending on the provider and payment/transfer method, the total time for this process can range from minutes to several business days.

Example of a Global Remittance

Here’s an example of a global remittance. Suppose Maria needs to send $200 to her family in Mexico:

•   Maria logs into an online remittance app and chooses to send $200.

•   She pays with her debit card.

•   The service charges her a fee of $3.99 and converts dollars into Mexican pesos at the day’s rate and does not add a markup.

•   Within a few minutes, her family in Mexico receives the equivalent of $196.01 in Pesos, available for cash pick-up at a nearby location.

Common Methods for Sending Global Remittances

There are several ways to send money internationally. Here are a few options to consider:

1.    Bank wire transfers: You can use a traditional bank or financial institution to initiate an international wire transfer.

2.    Online money transfer services: Digital platforms, like Wise and Xoom, facilitate online payments using your debit/credit card or bank account; the money can be sent to a recipient’s bank account or mobile wallet.

3.    Cash pick-up services: If the recipient doesn’t have a bank account, services like Western Union and MoneyGram allow senders to transfer money to a physical agent location, where recipients can pick it up as cash.

4.    Mobile money transfers: International payment apps, such as WorldRemit, allow individuals to store, send, and receive money via their mobile phones.

5.    International money order: If an electronic transfer isn’t possible, you can purchase an international money order (a prepaid, paper-based payment) and mail it to your recipient. They are available through banks and some retailers. The recipient can cash or deposit it in their local currency.

How Much Does a Global Remittance Cost?

According to a March 2025 analysis by the World Bank, the average fee for sending global remittances is 6.5% of the remittance amount.^[1] However, fees vary widely by transfer method. Here’s a closer look:

Global average	6.5%
Digital transfers	4.9%
Non-digital transfers	5%
Mobile operators	5%
Banks	14.6%

How to Choose the Best Remittance Service

When researching a remittance service to send money internationally, here are key some key factors to consider:

•   Fees and exchange rate: Banks and transfer services typically charge a transfer fee, which may be a percentage of the transfer amount or a flat fee. They also generally charge a markup on the exchange rate, which could be anywhere from less than 1% to 6%, or more. Be sure to consider both fees and markups when comparing services.

•   Transfer speed: A traditional bank wire transfer can take three or five days, while online platforms and cash transfer services can often complete transactions within minutes or hours.

•   Convenience and accessibility: Consider how your recipient will be able to receive the money. Do they have a bank account? Do they need cash in hand right away? Can they make an account on a payment app? This will help you determine the best way to send money overseas.

•   Customer support: A reputable transfer service will offer various ways to contact customer service, such as phone, online chat, or email.

Best Practices for Sending Money Abroad Safely

International transfers can be risky if handled improperly, so safety is crucial.

Tips for Secure Transactions

To send money internationally safely be sure to:

•   Use only licensed, regulated remittances providers (more on this below)

•   Triple-check the recipient’s details.

•   Verify all fees and exchange rates up front.

•   Set up two-factor (2FA) authentication.

•   Keep all receipts and confirmation numbers.

Common Scams to Avoid

Unfortunately, wire transfer scams are common. Here are some of the most popular schemes identified by the Federal Trade Commission (FTC) and how they work:

•   Apartment and vacation rental scams: The fraudster will ask you to wire money before touring a unit.

•   Fake check scams: You’re asked to deposit a bad check and wire the money before the check is found to be fraudulent.

•   Family emergency scams: Someone poses as a loved one in an emergency and asks you to wire money.

•   Prize scams: You’re led to believe you’ve won a prize but must first wire money for something such as taxes or shipping and handling.

•   Romance scams: Someone online pretends to be romantically interested in you and eventually asks for money.

•   Utility scams: A scammer poses as your utility company and threatens to shut off services if you don’t wire money ASAP.

How to Verify a Remittance Service

To find a legitimate service, make sure the provider:

•   Is fully licensed and regulated in the countries where it operates. This ensures the provider meets strict financial regulations set up to ensure secure transfers. In addition, they must follow compliance standards that prevent money laundering and other illegal activities. A provider’s licensing should be detailed on its website.

•   Has a trusted reputation in the industry. Read online reviews and look for consistently positive feedback about the provider’s reliability, customer service, and transparency. Be wary if you see complaints about delays, hidden fees, or poor communication.

•   Offers a high level of security. Look for a service that uses multi-level authentication, such as verification codes or biometric logins (like fingerprint or face scans). These security features make it harder for unauthorized users to access your account.

•   Is transparent about refund and cancellation procedures. A legitimate service will make it easy to find these terms before you confirm a transaction. Under federal law, you have at least 30 minutes to cancel the remittance transfer at no charge, unless the transfer has already been picked up or deposited into the recipient’s account.

Comparison of Leading Global Remittance Services

According to a September 2025 analysis by CNBC, these six international money transfer providers are among the top options:

Service	Standout Features	Delivery Options	Drawbacks
Remitly	Can choose Economy or Express transfer; over 350,000 cash pickup locations	Bank account deposit, debit card, mobile wallet, cash pickup	Express transfer fees can be high
Wise	No exchange rate markup	Bank account deposit, mobile wallet	No cash pick-up locations
OFX	No transfer fees for U.S. customers; no maximum transfer limit	Bank account deposit	Bank transfer only; no cash pickup locations
Western Union	More than 500,000 cash pickup locations globally	Debit card, mobile wallet, bank account deposit, cash pickup	Charges fees plus exchange rate markups
MoneyGram	Over 400,000 cash pickup locations globally	Bank account deposit, debit card, mobile wallet, cash pickup	Charges fees plus exchange rate markups
Xoom	Can use PayPal or cryptocurrency to fund transfers; large network of cash pickup sites	Bank deposit, debit card, mobile wallet, cash pickup	Charges fees plus exchange rate markups

The Global Impact of Remittances

Remittances are a big part of the global economy. Let’s take a closer look.

Statistics on Remittance Flows

Here are some recent stats on global remittances:

•   In 2024, global remittances totaled $905 billion.^[2]

•   Migrant workers typically send $200 to $300 every one to two months to families in their home countries.^[3]

•   More than one-third of remittances go to rural areas, helping to improve financial stability and food security in those regions.^[3]

•   Global money transfers are now the largest source of external finance for low- and middle-income countries.^[5]

Economic Impact on Developing Nations

The impacts of remittances on low- to middle-income countries include:

•   Reducing poverty by providing stable household income

•   Boosting household consumption

•   Promoting financial literacy

•   Reducing a household’s reliance on credit

•   Fueling local entrepreneurship

The Takeaway

Global remittances are more than routine money transfers — they are essential tools that help families stay connected, provide financial security, and keep international commerce moving. Whether you’re supporting loved ones, covering overseas expenses, or conducting business, global remittances offer a reliable way to move funds across boards safely and effectively.

SoFi Checking and Savings members can now send money to 30+ countries, including Mexico, India, Brazil, and more. Plus, make three international money transfers by 3/31/26 to earn $30 in rewards points.

SoFi worldwide money transfers are a fast, affordable, and simple way to transfer money to loved ones abroad — directly from the SoFi app.

Fast, easy international money transfers.

FAQ

What is the average cost of a global remittance?

The average cost of a global remittance is 6.5% of the amount of money being transferred, according to a 2025 analysis by the World Bank. However, cost can vary widely depending on the transfer method (bank transfers are generally more expensive than online transfer services) and where you’re sending the money.

How long does it take for a global remittance to complete?

International money transfers can take anywhere from a few minutes to several business days, depending on how you send the money. Transfers using a cash pick-up service or digital transfer platform often take only minutes or hours, while traditional bank wire transfers can take one to five business days.

Can I send a global remittance without a bank account?

Yes, it is possible to send a global remittance without a bank account. Some cash transfers services like Western Union allow you to pay for the transfer in person using cash. In addition, many online transfer platforms permit you to fund a transfer using a prepaid card or credit card with no need to link a bank account.

Are there any limits on a global remittance?

There are no federal limits on the amount of money that can be sent from the U.S. to other countries. However, remittance providers may set their own limits on how much you can send in a single transaction or per day or month. For example, transfer limits for banks typically range from $1,000 to $50,000 per transaction; while some transfer platforms limit you to $5,000 per transaction or $15,000 every 30 days.

How can I track my global remittance?

Remittance services typically provide tracking tools to monitor the status of your transfer. After sending, you’ll likely receive a confirmation number or tracking code, which you can use on the provider’s website, app, or through customer support. Some services also send emails or text updates to notify you when the funds are processed or received. Tracking helps ensure transparency and can provide peace of mind, as you’ll know where your money is and when it reaches your recipient.

What are the potential security concerns with remittance services?

While remittance services are generally safe, there are potential risks to be aware of. International money transfer scams are common, especially if you send money to someone you don’t know. Data breaches or weak cybersecurity practices could expose your personal or financial information. To reduce risks, always use licensed providers that require multi-factor authentication, confirm the recipient’s details carefully, and avoid sharing sensitive information on unsecured networks or suspicious platforms.

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Article Sources

1. Consumer Financial Protection Bureau (CFPB). What is a remittance transfer and what are my rights?.
2. Migration Data Portal. Remittances.
3. IFAD. 15 reasons remittances matter.
4. World Bank. Remittance Prices Worldwide Quarterly.
5. Niskanen Center. The 1% U.S. remittance levy: Impacts on Mexico & India.

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Photo credit: iStock/MicroStockHub

Global remittance services are available to SoFi members through SoFi Checking and Savings. SoFi Checking and Savings is offered by SoFi Bank, N.A., Member FDIC. Transfers are subject to the terms of the SoFi Bank Deposit Account Agreement in effect at the time of payment. Fees, exchange rates, and estimated delivery times will be presented prior to payment confirmation. Service availability may vary by country or recipient.

SoFi Checking and Savings is offered through SoFi Bank, N.A. Member FDIC. The SoFi® Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 12/23/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Bank Fee Sheet for details at sofi.com/legal/banking-fees/.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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An exit strategy is a plan to liquidate a financial investment or dispose of a business in order to maximize potential gains and minimize losses. Thus, an exit strategy for stocks, options, and other assets can be useful, whether prices have moved in the desired direction or not.

An exit strategy assumes that certain criteria, laid out in advance, have been met — and thus exiting the position by selling one’s stake will help preserve capital and/or minimize the risk of loss.

What Is an Exit Strategy?

Broadly speaking, an exit strategy refers to steps an individual takes in order to get out of a financial or business obligation, or even a personal one. For instance, an employee who’s interested in changing jobs may form an exit strategy for leaving their current employer and moving on to their next one.

What is an exit strategy in finance or business? It’s a plan crafted by business owners or investors that cover when they choose to liquidate their position in an investment. To liquidate means to convert securities or other assets to cash. Once this liquidation occurs, the individual or entity that executed the exit strategy no longer has a stake in the investment.

Creating an exit strategy prior to making an investment can be advantageous for managing and minimizing risk. It can also help with defining specific objectives for making an investment in the first place.

In other words, formulating your exit strategy beforehand, when investing in stocks, can give you clarity about what you hope to achieve.

Exit strategies often go overlooked, however, as investors, venture capitalists, and business owners may move ahead with an investment with no clear plan for leaving it.

How Exit Strategies Work

Investors use exit strategies to realize their profit or to mitigate potential losses from an investment or business. When creating an exit strategy, investors will typically define the conditions under which they’ll make their exit.

For instance, an exit strategy plan for investors may be contingent on achieving a certain level of returns when starting to invest in stocks, or reaching a maximum threshold of allowable losses. Once the contingency point is reached, the investor may choose to sell off their shares as dictated by their exit strategy.

A venture capital exit strategy, on the other hand, may have a predetermined time element. Venture capitalists invest money in startups and early stage companies. The exit point for a venture capitalist may be a startup’s IPO or initial public offering.

Again, all exit strategies revolve around a plan. The mechanism by which an individual or entity makes their exit can vary, but the end result is the same: to leave an investment or business when certain conditions are met.

Recommended: Stock Market Basics

When Should an Exit Strategy Be Used?

There are different scenarios when an exit strategy may come into play. For example, exit strategies can be useful in these types of situations:

•   Creating a succession plan to transfer ownership of a profitable business to someone else.

•   Shutting down a business and liquidating its assets.

•   Withdrawing from a venture capital investment or angel investment.

•   Selling stocks or other securities to minimize losses.

•   Giving up control of a company or merging it with another company.

Generally speaking, an exit strategy makes sense for any situation where you need or want to have a plan for getting out, whether you’re investing online or through other channels.

Exit Strategy Examples

Here are some different exit strategy examples that explain how exit strategies can be useful to investors, business owners, and venture capitalists.

Exit Strategy for Investors

When creating an exit strategy for stocks and investing, including how to buy stocks, there are different metrics you can use to determine when to get out. For example, say you buy 100 shares of XYZ stock. You could plan your exit strategy based on:

•   Earning target from the investment

•   Avoiding a loss on the investment

•   How long you want to stay invested

Say your goal is to earn a 10% return on the 100 shares you purchased. Once you reach that 10% threshold you may decide to exit while the market is up and sell your shares at a profit. Or, you may set your maximum loss threshold at 5%. If the stock dips and hits that 5% mark, you could sell to head off further losses.

You may also use time as your guide for making an exit strategy for stocks. For instance, if you’re 30 years old now and favor a buy-and-hold strategy, you may plan to make your exit five or 10 years down the line. On the other hand, if you’re interested in short-term gains, you may have a much smaller window in which to complete your exit strategy.

Exit strategies can work for more than just stock investments. For instance, you may have invested in crowdfunding investments, such as real estate crowdfunding or peer-to-peer lending. Both types of investments typically have a set holding period that you can build into your exit plan.

Recommended: 5 Investment Strategies for Beginners

Exit Strategy for Business Owners

An exit strategy for business owners can take different forms, depending on the nature of the business. For instance, if you run a family-owned business then your exit strategy plan might revolve around your eventual retirement. If you have a fixed retirement date in mind your exit plan could specify that you will transfer ownership of the business to your children or sell it to another person or company.

Another possibility for an exit strategy may involve selling off assets and closing the business altogether. This is something a business owner may consider if the business is not turning a profit, and it looks increasingly unlikely that it will. Liquidation can allow a business owner to repay their creditors and walk away from a failed business without having to file bankruptcy.

Exit Strategy for Startups

With startups and larger companies, exit strategies can be more complex. Examples of exit strategy plans may include:

•   Launching an IPO to allow one or more founders to make an exit

•   A merger or acquisition that allows for a transfer of ownership

•   Selling the company

•   Liquidating assets and shutting the company down

If a founder is ready to move on to their next project, they can use an IPO to leave the company intact while extricating themselves from it. And angel investors or venture capitalists who invested in the company early on also have an opportunity to sell their shares.

Startup exit strategies can also create possible opportunities for some investors. IPO investing allows investors to buy shares of companies when they go public.

The mechanics of using an IPO as an exit strategy can be complicated, however. There are IPO valuations and regulatory requirements to consider.

It’s important for startup founders to know how to value a business before taking it public to ensure that an IPO is successful. And early-stage investors may have to observe IPO lock-up period restrictions before they can sell their shares.

5 Types of Exit Strategies

There are different types of exit strategies depending on whether you’re an investor, a business owner, or a venture capitalist. Some common exit strategies include:

1. Selling Shares of Stock

Investors can use an exit strategy to set a specific goal with their investment (say, 12%), reach a certain level of profit, or determine a point at which they’ll minimize their loss if the investment loses value. Once they reach the target they’ve set, the investor can execute the exit strategy and sell their shares.

2. Mergers and Acquisitions

With this business exit strategy, another business, often a rival, buys out a business and the founder can exit and shareholders may profit. However, there are many regulatory factors to consider, such as antitrust laws.

3. Selling Assets and Closing a Business

If a business is failing, the owner may choose to liquidate all the assets, pay off debts as well as any shareholders, if possible, and then close down the business. A failing business might also declare bankruptcy, but that’s typically a last resort.

4. Transferring Ownership of a Business

This exit strategy may be used with a family-run business. The owner may formulate an exit plan that allows him to transfer the business to a relative or sell it at a particular time so that he or she can retire or do something else.

5. Launching an IPO

By going public with an IPO, the founder of a startup or other company can leave the company if they choose to, while leaving the business intact. As noted, using an IPO as an exit strategy can be quite complicated for business founders and investors because of regulatory requirements, IPO valuations, and lock-up period restrictions.

Why Exit Strategies Are Important

Exit strategies matter because they offer a measure of predictability in a business or investment setting. If you own a business, for example, having an exit strategy in place that allows you to retire on schedule means you’re not having to work longer than you planned or want to.

An exit strategy for investors can help with staying focused on an end goal, rather than following the crowd, succumbing to emotions, or attempting to time the market. For example, if you go into an investment knowing that your exit plan is designed to limit your losses to 5%, you’ll know ahead of time when you should sell.

Using an exit strategy can help prevent losses that could occur when staying in an investment in the hopes that it will eventually turn around. Exit strategies can also keep you from staying invested too long in an investment that’s doing well. The market moves in cycles and what goes up eventually comes down.

If you’re on a winning streak with a particular stock, you may be tempted to stay invested indefinitely. But having an exit strategy and a set end date for cashing out could help you avoid losses if volatility sends the stock’s price spiraling.

How to Develop an Exit Strategy Plan

Developing an exit strategy may look different, depending on whether it involves an investment or business situation. But the fundamentals are the same, in that it’s important to consider the specific conditions that must be met:

•   What form an exit will take (i.e., liquidation, IPO, selling shares, etc.)

•   Whether an exit is results-based or time-based (i.e., realizing a 10% return, reaching your target retirement date, etc.)

•   Key risk factors that may influence outcomes

•   Reasons and goals for pursuing an exit strategy

If you’re an individual investor, you may need to formulate an exit plan for each investment you own. For instance, how you exit from a stock investment may be different from how you sell off bonds. And if you’re taking on riskier investments, such as cryptocurrency, your exit strategy may need to account for the additional volatility involved.

For business owners and founders, exit strategy planning may be a group discussion that involves partners, members of the board, or other individuals who may have an interest in the sale, transfer, or IPO of a company. In either situation, developing an exit strategy is something that’s best done sooner, rather than later.

The Takeaway

Investing can help you build wealth for the long-term, and an exit strategy is an important part of the plan. It allows you to decide ahead of time how and when you’ll get out of an investment, and could help you lock in returns or minimize losses.

Invest in what matters most to you with SoFi Active Invest. In a self-directed account provided by SoFi Securities, you can trade stocks, exchange-traded funds (ETFs), mutual funds, alternative funds, options, and more — all while paying $0 commission on every trade. Other fees may apply. Whether you want to trade after-hours or manage your portfolio using real-time stock insights and analyst ratings, you can invest your way in SoFi's easy-to-use mobile app.

Invest with as little as $5 with a SoFi Active Investing account.

FAQ

What are different exit strategies?

Examples of some different exit strategies include selling shares of a stock once an investor realizes a certain return or profit, transferring ownership of a family business so an owner can retire, or selling all the assets and closing down a failing business.

What are the most common exit strategies?

The most common exit strategies depend on whether you’re an investor, the owner of an established business, or the founder of a startup. For investors, a common exit strategy is to sell shares of stock once they reach a certain high or low. For owners of an established business, a common exit strategy is mergers and acquisitions, because doing so is often favorable to shareholders. For founders of startups, a common exit strategy is an initial public offering (IPO).

What is the simplest exit strategy?

For an investor, the simplest exit strategy is to sell shares of stock once they reach a certain profit or target level of return. At that point they can sell their shares for more money than they paid for them.

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Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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