[joshyeager]

In a privately-held company, you usually can't sell your stock without approval (from the board, a shareholder vote, or some other mechanism). That generally makes it quite difficult to sell.

Dividends are the main source of value from stock in a company that doesn't plan to sell. But dividends are also determined by the board. In a closely-held company, the majority owners may also be the board, and they may prefer to leave the profits in the company or take them out a different way.

"Worthless" is an extreme characterization, but the value you receive from owning a minority amount of private stock is much less predictable and controllable than publicly-traded stock.

[hellisothers]

Exactly this, there is no liquidity available for this stock ie it has no monetary value because you’re not allowed to sell it and it will never be sold. I think at one point a tiny dividend was paid, once, but it became clear the profits are intended for the principal owners. Which really is conceptually fine as long as that is clear up front.

[jrs235]

You are correct. I was going to post a similar response.

Regarding worthlessness: I suppose some might place some value on access to company financials.