37

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 Street Journal here. You could approach the company and ask if they are interested in buying back shares, or if they know anybody who is interested in buying. But ...


24

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 happen: scour their website and financial news websites for anything that might indicate that this is still a possibility. If you do still have contacts within ...


9

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 unless the company is buying.


5

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 to anyone who asks. The stock reaches a certain price higher than the option price, and you use your stock options to get a nice payday. 2: The company gets ...


4

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.


2

Your concern seems to be the need to put up cash to exercise the options. You would only do this, of course, if the stock is worth more than the exercise price; that is where the value of the options comes from. However, the liquidity aspect is a legitimate issue. One approach, which may not be permitted by your terms, is to sell the options to someone else ...


2

First, read the rules carefully. If necessary, talk to your manager and co-workers until you understand what your options are. My option was slightly different than what you described, and I am sure that there are other minor variations. Yes, you will need to put in money to buy the shares if you choose to exercise your option. If the stock price goes up, ...


2

To answer your question: No. Stock options aren't worth as much as shares, because if they were, there would be no reason to not just buy the stock outright. The price of an option is based on the different between the current price (whatever that is) and the strike price (which in your case is 35 cents) with a floor of 0, plus some time value based on the ...


2

A stock option gives you the option to purchase shares in the future at a particular prices which is specified when the options are granted, say $100 (called the strike price). If the stock goes up after the options are granted, to $110, for example, you have the option the purchase one share for $100, which you can then immediately sell for $110, getting ...


2

The number of authorized stocks for a company big enough to hire 100's of people per month (never mind per day) will likely have 100's of millions of shares authorized, not 100's of thousands. For example, my company has ~20,000 employees (so assuming the average employee stays for 5 years, they need about 300 new hires per month) and ~400,000,000 ...


1

All common stock shareholders got zero. I assume you mean the stock was cancelled (by the company), so you didn't receive any payment and cannot receive any in the future. If you still have any legal right to possibly receive something, it means you haven't yet definitely lost everything, at least for tax purposes. Should I expect any tax documents from ...


1

Both NQO and ISO are stock options offered for employees and directors as extra incentives and compensation for the work on that specific company. The non-qualified means that they are not restricted by waiting periods, profit, price, employee status or any other stipulation. When employees sell shares after they vest, they have the potential to receive ...


1

what happens if the company goes bankrupt, or fails completely You would become a creditor that would seek repayment with the liquidation of assets. This would probably be considered wages, and in some jurisdictions wages have a higher priority for repayment. Depending upon the depth of the failure, you would probably get most of your funds returned. ...


1

You can reach out to the company and see if they are interested in buying you out. Depending on local laws (IANAL), to do that, they might have to issue a buyback. Smaller, privately held, companies probably won't do that as they lack the necessary cash. Your next option is to do your own research. Start with the state of Delaware's division of corporations:...


1

My main concern is that I've sacrificed some significant portion of my salary in order to receive these stock options and that they aren't actually worth anything They might end up worthless, but they also might end up being worth more than you paid for them. Let's take a simple example. Suppose you paid $5 per share for these options with a strike price ...


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