A stock option is not stock, it is a promise that if you wait for a period of time you will have the opportunity to buy stock.
If you’re laid off like I was, you would be given an opportunity to exercise that option, which means you’d pay the company some money to own some stock, the company sometimes determines the price of that stock as at when you’re purchasing it or the price could be hedged but that is rare. How do I know this? I own a few stock options. I hope you understand better now.
And like i just told you, Konga did it wrong.
They are NOT to give you stock options but actual stocks, you only get to buy stocks when there are some available either from Seed Preferred or Nominal opened by Shareholders of the Company which you can then exercise on your free will to buy more.
I have Stocks in several Agencies i was in before i came here to set up my firm and whenever in 6 months to years there is a sale i can opt in for more
I also agree that if the company fails you fail, i am just suggesting as alternative means than great overhead that firms offer that option.
This is the statement I was responding to.[quote=“Freshboi_Ekundayo, post:42, topic:7504”]
And like i just told you, Konga did it wrong.
They are NOT to give you stock options but actual stocks, you only get to buy stocks when there are some available either from Seed Preferred or Nominal opened by Shareholders of the Company which you can then exercise on your free will to buy more.
[/quote]
What you describe is not a stock option but some form of restricted stock unit (RSU) which is what companies like Uber use to control their stocks with employees, a news article about it is [here.] (TechCrunch is part of the Yahoo family of brands)
…at a predetermine (usually discounted) price.
The price is to be determined when the options are offered, not when they are exercised.
Many startups don’t know how stock options operate.
I’ve had some options in the past that became worthless really fast.
Three sentences here, the first two are not true and the last, well, every startup on http://autopsy.io/ offered some form of equity at some point or the other, they all have one thing in common, they’re totally worthless.
That would be
and
Could you prove your assertion that they are not true?
First off and I should have included this in the first post, generalizations are not truth.
Each stock option agreement is different and their terms are too, the premise however is the same.
Nothing a quick Google search and a trip to the lawyer can’t solve, any startup founder thinking of using stock options as a form of compensation knows that.
Reading all this and wondering if it is too much to hope for something like the Paypal mafia coming out of this.
And, yes, I get that they haven’t exited. Still…
Of course, but for it to be called an ‘option’, it must have the attributes of an option.
Two of which are:
Predetermined exercise price.
Predetermined exercise date (employee stock options being an exception to this).
From Investopedia:
An employee stock option (ESO) is a stock option granted to specified employees of a company. ESOs carry the right, but not the obligation, to buy a certain amount of shares in the company at a predetermined price. An employee stock option is slightly different from a regular exchange-traded option because it is not generally traded on an exchange, and there is no put component…
You’d be surprised. Mine didn’t, for one.
If it isn’t written that way in the agreement you signed, its just an opinion. As long as you pay attention to the fine print, you’d be fine. (pun intended)
Na wa ooooo I thought such companies should be creating jobs