The event type is simply the reason why the transaction happened.

Choosing the correct reason is important because it helps the company:

This article explains each event type, so you can choose confidently.

A share transfer is when shares move from one person/company to another person/company.

No new shares are created, they only change owner.

Here are the event types you can choose from, explained simply:

One person sells their shares privately to someone else.

Someone receives shares after another person has passed away.

Shares are given as a type of dividend instead of cash.

A company splits into separate companies, and shares must be moved.

Shares are given as a gift, with no payment.

A company or holding company is closed, and shares are moved out before it disappears.

Two companies join together, and shares must be moved to new owners.

Use this if none of the other options fit.

Some transfers have special tax rules. Use these options when the transfer follows specific tax regulations.

The tax values of the shares stay the same when they move to a new owner.

The person receiving the shares does not keep the old tax values.

Same as above, but for gifts.

The transfer is taxable, but the original tax values stay the same.

Shares are moved between foreign companies.

Shares change owners because of a divorce settlement.

A merger where the share transfer creates a tax event.

Shares are moved between companies that are part of the same business group.

A mix between a gift and a sale (the buyer pays only part of the value).

Shares are moved because the business type changes (for example converting into a limited liability company).

The company buys back restricted shares because an agreement ended.

These event types are used when new shares are being created.
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This happens when the company receives new money, converts debt, or grants equity through option/RSA programs.

Here is what each event type means:

Someone pays money to buy newly issued shares.

The company owes someone money, and instead of paying them back, it gives them shares.

A convertible note is turned into shares. Common types are SLIP, KISS, and SAFE.

A loan is converted into shares.

Someone exercises their options and receives shares.

Someone accepts an RSA agreement, and the company issues shares to them, or they buy shares from the company or another shareholder (often the founder).

Someone settles a warrant and receives new shares.

Used only when the company is created and the very first shares are issued. Can include several sharesholders.

Use this if none of the other event types describe what is happening.

New shares issued specifically to employees (outside of options or RSA programs).

New shares issued as part of a restructuring within a group of companies.

The company issues shares as a dividend, and the dividend is tax-free.

Same as above, but the dividend is taxable.

Special type of issuance that qualifies for certain tax deductions under local rules.

Event types are simply the reason behind the transaction.

Choosing the correct one helps keep everything clean, simple, and correct in your company records.