41
votes
How can I sell my shares in a privately-owned company I used to be employed by?
No, private companies have no obligation to help you sell their
shares.
It may not be legal, but there is very little you can do short of suing the company. Great article about this from the Wall ...
- 16.1k
25
votes
How can I sell my shares in a privately-owned company I used to be employed by?
The company going public is probably your best chance of being able to sell your shares. Therefore, your first job should probably be to try and see if there are any indicators that this might still ...
- 9,604
24
votes
Accepted
Could very old employee stock options still be accessible and viable?
Probably not.
A stock option usually has an expiration date. If you want to convert a stock option into an actual stock (which could indeed still have value), you need to exercise the option before ...
- 24.1k
23
votes
Accepted
When my stock options fully vest, is that the equivalent of a pay cut?
Yes, you are thinking about this correctly, and are not being greedy.
If your options are fully vested and you are being paid a below market salary, then you have no economic incentive to stay at your ...
- 7,556
23
votes
Accepted
What are my rights as a small investor in private equity, and what can I do about the company not responding to me?
You have a right to turn up at the AGM (and any special general meetings), and ask questions there. Otherwise, they are free to ignore you.
They are unlikely to give information about the business' ...
- 10.6k
16
votes
Accepted
Company just got acquired. What does this mean for my common stock?
You should call up the company and ask that. (HR should be able to handle this.) Stock options cover a range of possibilities, and you'll probably need to contact them anyway to get this taken care of....
- 4,353
15
votes
Accepted
Is there a reason to exercise a stock option as soon as it vests?
Advantages
Long-term capital gains tax rates. If your company has a liquidity event, if it's been at least a year since you exercised your options, it will be considered a long-term capital gain and ...
- 16.1k
15
votes
When my stock options fully vest, is that the equivalent of a pay cut?
Am I thinking about this correctly? If I'm just being greedy here, let me know.
No, you're not thinking about this correctly. You got a retention bonus, even if it was "sold" to you as some ...
- 181k
11
votes
Why don't share prices of a company rise every other Friday when the company buys shares for its own employees?
This is an old question that has an accepted answer, but it has gotten bumped due to an edit and the answers given are incorrect.
I am assuming this means that every other Friday, the company is ...
- 140k
10
votes
How can I sell my shares in a privately-owned company I used to be employed by?
In general, shares in a private company aren't worth anything. (Unless the company is paying dividends or they give voting privileges or something.) There's no good way to convert them into cash ...
- 4,353
10
votes
Acquisition/Share holding question
If/When your company gets acquired, your 10,000 shares will either be bought outright at some fixed price based on the terms of the acquisition and you will receive cash, or they will be converted to ...
- 140k
7
votes
What does "cashes in many of his Enron share options" mean?
"Cashing in" means converting to cash; selling his shares. The wrinkle is that he didn't actually have the shares at the time he wanted to sell them, only vested share options that he had been given ...
- 9,072
6
votes
What is the total underpayment penalty for not paying AMT immediately?
I think you might be overthinking this. In general, the alternative minimum tax (AMT) due (if any) is not due as of the date(s) when the events that triggered the AMT occurred and there is no need to ...
- 31.6k
6
votes
Accepted
Can a wash sale exist across calendar years?
Yes - in fact that's the reason for the wash sale rule, to keep people from selling at the end of one year to claim a tax deduction for the realized loss, then rebuying at the beginning of the next ...
- 140k
6
votes
Is there likely to be a market for private company incentive equity if it's assessed value is more than it's worth?
It depends on the company charter. Some companies allow employees trading their shares in what is called "over the counter" (OTC) market. Not all companies allow that, some companies do not ...
- 181k
6
votes
Is it considered insider trading selling options on company gifted shares of stock?
It's only insider trading if you trade based on material, nonpublic information. Simply trading stock (or options on that stock) of a company you work for is not necessarily insider trading.
However, ...
- 140k
5
votes
Accepted
RSU taxation: when am I taxed, and how much?
Restricted Stock Units are different from stock options because instead of buying them at a particular strike price, you receive the actual shares of stock. They are taxed as ordinary income at the ...
5
votes
Accepted
Why is there a significant disparity between 409A valuation and fair market value?
There a few factors at play here. First, let me address the difference between the 409A valuation and the recent round of financing. Venture capital investors typically invest in preferred shares of a ...
- 66
5
votes
Does AMT affect cost basis of future capital gains?
You don't pay taxes on the discount ($1->$2) twice. You actually have a separate cost basis for your shares in the normal tax system versus AMT. Google 'AMT cost basis' and you'll see examples like ...
- 16.1k
5
votes
Accepted
What are the most common partner equity distribution for startups?
If you watch episodes of shark tank, you might gain some insight into the uniqueness of deals that are dependent upon a myriad of other factors.
Having to choose, the three will typically split the ...
- 78.5k
5
votes
Are stock options worth as much as shares?
In your comment you note that your company is not yet listed. This is important.
So, what are stock options worth? Let's give some scenarios:
1: The company becomes public, and starts selling shares ...
- 4,353
5
votes
Accepted
How much are my shares worth in the startup I work for?
There are a few important points you should be aware of. Based on your question I am assuming that your company has not gone public yet.
Yes, the nominal value of each share is $10. However this is ...
- 13.9k
4
votes
Accepted
Approximate IT company valuation (to proximate stock options value)
This situation sounds better than most, the company it seems likely to be profitable in the future. As such it is a good candidate to have a successful IPO.
With that your stock options are likely ...
- 78.5k
4
votes
Accepted
Perform exercise-and-hold AND exercise-and-sell-to-cover?
The simplest thing to do here is to speak to your employer about what is allowed. This should be spelt out in your company's "Stock Options Plan" documentation. In particular, this document will ...
- 6,430
4
votes
Are companies like EquityZen legitimate and useful?
Stuff I wish I had known, based on having done the following:
Obtained employment at a startup that grants Incentive Stock Options (ISOs);
Early-exercised a portion of my options when fair market ...
- 199
4
votes
Accepted
Is there anything to do immediately after exercising stock options?
Much like if you had a large capital gain with no withholding, you should determine if you'll be at risk of an underpayment. Generally this means you end up owing more than $1000 at tax filing time, ...
- 16.1k
4
votes
Comparing stock purchase plans in offer letter
The legalese on those two you posted look pretty standard. The big change I saw is that on the second, the vesting after the first year is monthly, whereas the first one is yearly through the whole 4 ...
- 161
4
votes
Can an employee be paid 100% in stock
Companies that offer compensation in stock have to withhold the tax of the employee's income. This is common in RSU (Restricted Stock Unit) and RSA (Restricted Stock Award) arrangements that publicly ...
- 20.2k
4
votes
Accepted
ISO exercise limit before triggering AMT
Around $32,600 of discount/spread in exercised ISOs would give you a roughly equivalent total tax between the regular and AMT systems.
With these numbers, under the regular tax system you'd pay $22,...
- 16.1k
4
votes
Accepted
If employees exercise options that they are given by the company, will that increase the number of outstanding shares?
Yes, when stock options granted to employees are exercised, then new stock is bought from the company at the strike price, so new shares are created and existing shares are diluted.
- 140k
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