2 ms·

Why can't they take out loans for that purpose? Seems like free money for a bank

• x0x0 11y ago
  At the required decision time, the employee often has no idea how much or when a company will be worth money. Plus the obvious risk that someone fucks up and the company is worth a lot less than planned.
  • ryandrake 11y ago
    So he didn't really "walk away from $0.5m". He walked away from a piece of paper that may or may not be worth $0.5m in some unknown time (or never) in the future.
    • x0x0 11y ago
      Had he been able to exercise he would have received that half million
      • FireBeyond 11y ago
        Then and there? Then yes, no doubt he would have been able to get a loan from somewhere to cover this. He'd have had to eat some interest, perhaps. If not, then the parent's point - a ninety nine per cent "sure bet" is still not a one hundred per cent guarantee.