Is a company is private...

Jun 22 8 Comments

If a company is private, do they still need to provide stock options when providing an offer?

Is that stock offer just Monopoly money?

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TOP 8 Comments
  • Microsoft kebabs
    No company, private or listed needs to provide stock options whatsoever.

    Private company stocks are worth as much as someone is prepared to buy them from you for, just like a listed public company.
    Jun 22 6
    • Microsoft kebabs
      No, why would any company *NEED* to provide stock options?
      Jun 22
    • OP
      I love it
      Jun 22
    • OP
      I agree.
      Jun 22
    • OP
      If they do go public, would I then expect them to offer options?
      Jun 22
    • Microsoft kebabs
      This is a really weird line of questioning. If you want options etc you should simply negotiate as part of your package
      Jun 22
  • Apple / Eng tWBu16
    I suggest you read up on private company stock.

    No company is required to give stock options as part of the deal. Many jobs do not over stock as part of the compensation to the employee, instead only giving them money. If the company is large enough and the employee works enough hours they may be required by law to offer the employee a health insurance plan option.

    You cannot expect a company to offer you stock or stock options. Like salary it is something you discuss before starting the job and come to an agreement to. But you don’t know what the other side is offering until they tell you. And you don’t know for sure that they are being honest until they give you paperwork to sign.

    Some companies offer stock options as part of the compensation. Once you exercise the option and buy the stock, it is yours to keep or sell, private or public.

    One way to make money off of private stock is to hold onto it until the company gets acquired or does an IPO. But there are lots of ways to sell shares in a private company. It’s a little bit harder than selling public stock because the SEC regulations are slightly different. But it’s not that much harder. You can sell it to anybody if the company whose stock it is provided some information to the investor. You can even sell it back to your company that sold it to.
    Jun 22 0