3 ms·
I think there's a great opportunity for investors to sell "put" options* to startup founders. *In exchange for "premium" (payment could be made in shares at a
by mgav 11y ago
I think there's a great opportunity for investors to sell "put" options* to startup founders.
*In exchange for "premium" (payment could be made in shares at a future date), person gets the right (but not the obligation) to sell their stock at a fixed price over a specified period of time.
If the value goes up, you lose the premium but keep all your other shares. If the value goes down, exercise the option and sell at the agreed-upon price.
CAUTIONS: (1) clear this with your attorney and tax accountant; (2) if the writer of this option goes bankrupt and your shares plummet in value, you're probably out of luck.