4 ms·

So I never understood - it seems like it would cost you 200k to buy something worth a million. Arent there people/institutions out there that would cover the 20

• imsofuture 10y ago
  Yes, it's my understanding the company will sometimes offer ways to finance the options purchase such as cashless exercise, or promissory note. Alternatively you can taking out a loan (anything from a general loan, to a specialize 'options exercise loan'). Cribbed this answer from the longer form one here: https://www.quora.com/How-am-I-supposed-to-afford-my-stock-options https://www.quora.com/How-am-I-supposed-to-afford-my-stock-o...
• Swizec 10y ago
  Most banks will give you that loan if the stock is liquid and actually evaluatable. But if something happens on your way from the bank to the stock sale, guess who still has to pay back all that money.
• WalterSear 10y ago
  It's common to perform a sell-to-purchase, covering the stock purchase with the sale of itself.
• Anderkent 10y ago
  Unless there's buyers for that stock lined up, what you're buying is only worth a million on paper.