Timeline for Non Qualifying Stock Option offered by employer
Current License: CC BY-SA 3.0
6 events
| when toggle format | what | by | license | comment | |
|---|---|---|---|---|---|
| Dec 20, 2016 at 21:59 | comment | added | David Schwartz | Actually, in your example the value of his options does not go down, it goes from $0 to $0. | |
| Sep 23, 2015 at 3:24 | vote | accept | John | ||
| Sep 22, 2015 at 3:49 | comment | added | blm | Oops, you're right of course on the grace period only applying to vested options. Sorry. | |
| Sep 22, 2015 at 2:13 | comment | added | littleadv | @blm grace period is for already vested options. As to the dilution, yes, my example is very simplistic, just to demonstrate the idea. | |
| Sep 21, 2015 at 20:33 | comment | added | blm | A couple of minor points: a) The last sentence in 2 isn't necessarily true, for example, the first option grant notice I just looked at from my previous company provides a 3 month grace period after termination to exercise. b) In 4, if an investor is given a 50% stake in a $302M company, they're probably investing a significant amount of money, which increases the valuation of the company. The point about dilution is a good one, but it's not quite as simple as in the answer. Other than that it's a good, comprehensive answer. | |
| Sep 21, 2015 at 8:11 | history | answered | littleadv | CC BY-SA 3.0 |