3 ms·
Last week he corrected people on this 'payday' usage, I think this is the same misusage. He is allowed to buy the stock for this price, he does not have the ri
by thomaszander 6y ago
Last week he corrected people on this 'payday' usage, I think this is the same misusage.
He is allowed to buy the stock for this price, he does not have the right to sell it for 5 years, though.
So he pays taxes based on todays stock-price, but if it plummets he goes down with it getting nothing since he can't sell for 5 years.
So, sure, he's already rich and this will make his valuation much better. Over which he should pay taxes. But its not a payday in my view of the world when you can't actually buy anything for it since he can't sell those for 5 years.
- deleted 6y ago[deleted]
- nn3 6y agoHe could use the stock as security for debt. That's a fairly standard practice by individuals who own a lot of stock in a company but don't want to show distrust by selling any.