4 ms·
The main point of stock options is a tax hack: it's a way to give someone something (a promise) that has a face value but no taxable value. Generally speaking,
by spoonie 11y ago
The main point of stock options is a tax hack: it's a way to give someone something (a promise) that has a face value but no taxable value. Generally speaking, you pay taxes on stock options when you exercise them, not when you earn them. The difference between strike price and market value at exercise time is incidental. I don't think stock options are a good analogy here. Maybe you want 'ad futures', like 'pork belly futures'.
- kasey_junk 11y agoOptions as pre-ipo startups may or may not be primarily a tax hack, but options more generally are much more than that. Like most instruments they are a mechanism for pricing risk. With that in mind you could see some sort of ad derivative. I'm not sure if it would be options, futures or bundled tranches. Its not clear what the OP means.