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By Law, if you already own the stock (not just the option), you can demand to see the financial information of the private company. A few years ago, there was a

by akg_67 11y ago

By Law, if you already own the stock (not just the option), you can demand to see the financial information of the private company. A few years ago, there was a story about an ex-googler who demanded and received access to Google financial information while Google was still private.

icedchai 11y ago
Unfortunately I only have options at the moment. Perhaps I should exercise some of them just to get the financial info?
- toomuchtodo 11y ago
  Exercise 1 share? Not a lawyer or accountant, but the tax liability for one share should be minimal.
deleted 11y ago
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prostoalex 11y ago
It's a very limited set of documents, like prepared quarterly and annual statements.
- akg_67 11y ago
  I agree the information typically provided by the private companies is limited. But they offer insight into health of the company. The person reviewing these statements need to know how to analyze and reconcile financial statements. Also, as shareholder, you can ask their finance person to explain/elaborate certain items in the statements. Shareholders' Equity section of Balance Sheet statement and Cash Flow from Financing Activities section of Cash Flow statement might also give additional insights. Company will be accounting for value of preferred shares, any dividend/interest paid on preferred on these statements. I am not sure how much an employee can push without jeopardizing the job. IME, most owners and executives of such entities are typically egomaniacs who don't like being questioned unless someone has bigger stick than them. My personal experience is very limited and only as external investor.
  - JonFish85 11y ago
    As an employee who left a company and purchased one share on the way out, I imagine I have nothing to lose? I wonder if I am entitled to this information.
    - akg_67 11y ago
      You never know unless you try. Just send them a request to provide you annual report and invite to annual meeting. All corporations are required to prepare an annual report for shareholders and hold an annual meeting.

by akg_67 11y ago

icedchai 11y ago

Unfortunately I only have options at the moment. Perhaps I should exercise some of them just to get the financial info?

toomuchtodo 11y ago
Exercise 1 share? Not a lawyer or accountant, but the tax liability for one share should be minimal.

deleted 11y ago

[deleted]

prostoalex 11y ago

It's a very limited set of documents, like prepared quarterly and annual statements.

akg_67 11y ago
I agree the information typically provided by the private companies is limited. But they offer insight into health of the company. The person reviewing these statements need to know how to analyze and reconcile financial statements. Also, as shareholder, you can ask their finance person to explain/elaborate certain items in the statements. Shareholders' Equity section of Balance Sheet statement and Cash Flow from Financing Activities section of Cash Flow statement might also give additional insights. Company will be accounting for value of preferred shares, any dividend/interest paid on preferred on these statements. I am not sure how much an employee can push without jeopardizing the job. IME, most owners and executives of such entities are typically egomaniacs who don't like being questioned unless someone has bigger stick than them. My personal experience is very limited and only as external investor.
- JonFish85 11y ago
  As an employee who left a company and purchased one share on the way out, I imagine I have nothing to lose? I wonder if I am entitled to this information.
  - akg_67 11y ago
    You never know unless you try. Just send them a request to provide you annual report and invite to annual meeting. All corporations are required to prepare an annual report for shareholders and hold an annual meeting.