For those who joined pre-ipo companies, how does paper money work? Are these shares tracked by some broker (morgan stanley or others)? What happens if you leave the company, do you leave these behind, if not how do you get the share once the company ipos?
TC: 350K, YOE: 12
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If you leave the company, you have the option to buy all vested stock options within certain days. You can continue to hold them as long as you like.
If you have the money, it’s tax advantaged to exercise as early as possible. You both reduce the immediate tax you’d have to pay (income rate), and also shift the whole remainder to just cap gains.
When stock is issued, a thing called a “certificate”, which states the holder, amount and class of shares, is created and signed by the treasuser and the president (for delware c corps at least).
That being said, most reasonably large/vc funded company will use some software for this, like Carta. But Carta is not a broker, they’re just a SaaS that, to put it simple, has a better spreadsheet for the cap table than google spreadsheets.