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They usually are worth zero, but they also cost the company zero, right?
by ForHackernews 8y ago
They usually are worth zero, but they also cost the company zero, right?
- hobofan 8y agoNot 100% sure, but dependant on how the ESOP equity pool is structured, it can be quite limiting in terms of fundraising options if not done well.
- jerguismi 8y agoHow is the cost for the company zero? If you issue employee options/stocks, you devalue existing shares. Often investors have invested to the company and have paid cash for the shares. From company shareholders perspective the cost of issuing shares to employees is definitely not zero.