Is it better to join company with RSU at market low or market high?
I guess same can apply to options. Should you value cash more when offer is made at stock market high and value stocks/options more when market is at the bottom? Can you assume you would get same cash equivalent of options/stocks in both situations?
You’re always trying to buy low and sell high even if you sell before you buy as with put options. Taking stock instead of cash is a long position. So, if you believe the stock will go up, you want a long position. If not, you want a short position (or no position as with the cash case).
Typo. Already =atleast. The temporary fluctuation should not be a deciding factor.
That's short term thinking. If it's at market high you have to think how much higher can it go. If management is crushing operational and product goals to foreseeable 10x, joining at market high will look like a steal. If it's at market low and company looks like it's failing, it'll only go lower.
Well unless you think you can time your screening, on-site, joining and stuck allotment everything on the same day during trading hours, i don't see how you'd be certain of a stock price when they are allotted to you. But again do the math yourself if joining at lower price benefits you more or at higher price
I was more referring to overall market climate. If another 2008 comes I don’t think any stock can escape shedding 30% or more. I was just asking out of some probability curiosity. There are certainly tons of other more important factors in considering when to join a company.
If another 2008 comes, i don't think you'd have a chance to strategically pick an offer. You'd jump at the first offer you get.
Its not about the current price of the stock/RSUs its about the potential gain it can give.
Haha. Why do we think we can time joining a Company based on stock price when there is enough material that already shows it's extremely hard to time purchasing stock purely on such criteria. Get into a company for long term. Your RSUs are typically on 4 year vesting cycles and you should be sure that the company prospects are good for already that long
I think the catch is we always join with a belief it’ll Do well over the vesting period. But joining when the stock is doing relatively poor locks more units of stock which will vest over the period.
That only works if the company does well eventually. It does not go as planned :D