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I don't know much about S-Corps, but don't they just spend excess revenue on stock buyback while giving $1 a year (Steve Jobs style) employees generous stock op
by codexon 17y ago
I don't know much about S-Corps, but don't they just spend excess revenue on stock buyback while giving $1 a year (Steve Jobs style) employees generous stock options taxed at 15% capital gains tax?
- tptacek 17y agoNo, because S-Corps can't be publicly traded, so their stock options have no liquidity.
- codexon 17y agoIs there a law that prevents the company from doing stock repurchases from private owners though? If the private stock owners always agree to sell the stock back to the company at a higher purchase price (achievable with a handful of private owners), then there would be no liquidity problem.