Timeline for Confused about employee stock options: How do I afford these?
Current License: CC BY-SA 3.0
13 events
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| S Jun 25, 2014 at 15:13 | history | suggested | AviD | CC BY-SA 3.0 |
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| Jun 25, 2014 at 15:11 | review | Suggested edits | |||
| S Jun 25, 2014 at 15:13 | |||||
| Mar 10, 2014 at 18:01 | history | edited | CQM | CC BY-SA 3.0 |
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| Dec 2, 2012 at 19:07 | comment | added | CQM | @C.Ross I don't really know where to start, the OP provided more information since then and I wasn't answering questions about liquidity originally | |
| Dec 2, 2012 at 17:54 | comment | added | C. Ross | @CQM Can you edit that into the question, will clean up these comments in a day or so. | |
| Dec 2, 2012 at 17:29 | comment | added | CQM | @C.Ross yes, the vibrant tech startup scene. Everyone wants to offer you equity but its worthless 9 out of 10 times, so you need to be able to look at all the angles of it | |
| Nov 25, 2012 at 13:34 | comment | added | C. Ross | Can you provide examples of or references to the type of situation you're referring to? | |
| Nov 24, 2012 at 20:58 | comment | added | JTP - Apologise to Monica♦ | @CQM I'll concede that such issues are possible, but likely or not, the OP can tell us the liquidity of his own company stock. If he confirms your scenario, it's a tough situation to own shares that one cannot sell. And instead of a potential windfall, this may turn into a significant risk. I'd not exercise such options until these facts are well understood. | |
| Nov 24, 2012 at 20:16 | comment | added | CQM | @JoeTaxpayer it is highly likely that there will be no willing buyers, your scenario assumes that the options were immediately bought and sold and that the employee gets just the profit difference. In a typical scenario with illiquid securities, there is no one to sell to, so they will be simply bought and there will be a PAPER profit immediately, but there is no way to realize that profit. Off the top of my head I don't have a source for this, but since this is a fundamental aspect of securities liquidity the burden of proof will be on you to disprove it. | |
| Nov 24, 2012 at 20:13 | history | edited | CQM | CC BY-SA 3.0 |
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| Nov 24, 2012 at 18:27 | comment | added | JTP - Apologise to Monica♦ | @CQM - There's typically a long period after vesting, but before expiring, 10 years is common. I've never seen a situation that didn't permit a 'cashless exercise' even with closely held, non-public shares. Do you have any links/docs supporting this answer? | |
| Nov 24, 2012 at 13:52 | comment | added | Vitalik | I think stock options and equity are more than just a financial incentive, especially in a small company. Employees with stock options or with equity are more motivated in seeing the company succeed, increase of product quality rather than those who just work for a paycheck. I know at least I am. | |
| Nov 24, 2012 at 9:33 | history | answered | CQM | CC BY-SA 3.0 |