What does it mean when a private company offers RSU as part of their offer? (It’s Aurora the self driving car company) Does that mean I can sell their RSU like regular stocks? I thought only publicly traded companies can offer RSU and private companies offer stock options 🤔 Correct me if I’m wrong
Why would you trade RSU when you are working for that company? Wait for IPO and boom
IPO is the best scenario, not every company could reach that stage and not everyone can wait for that exit. Financial situation could be different for different individuals too, the ability to trade is always good to have.
How much RSU did they offer? They previously used to give options You can DM me for more info.
You basically can’t sell it until IPO. Lots of restrictions on secondary market and stock usually sells for a discount there. So you’re basically just being granted unsellable stock before IPO. And you’ll have to pay income taxes on the value of the stock even though you can’t sell it.
There’s some talk of a SPAC going on soon, so it may be liquid sooner than you think (although a lockup might be in effect, depending on timelines).
Any company can offer RSUs, but some private companies allow you to trade on secondary markets that aren’t the stock market while others don’t allow you to sell at all until IPO.
So you can trade RSU on secondary markets? But not stock options?
No, even private companies like Instacart that issue RSUs can restrict selling on secondary markets (they do 😢). You can look at sites like equityzen for more details.