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b/c you can sell them at that point, the shares today are illiquid and they'd probably have to do something like a prepaid variable forward to be able to afford
by richiezc 6y ago
b/c you can sell them at that point, the shares today are illiquid and they'd probably have to do something like a prepaid variable forward to be able to afford to exercise and pay tax (~23% of FMV - strike price) we're talking millions of dollars for early employees who didn't do an 83b election.
once airbnb IPOs they could do either of the following:
* Cashless (exercise and sell to cover: sell enough of your shares to cover the purchase price and applicable fees and taxes.
* Cashless (exercise and sell): sell it all
- naveen99 6y agoYou clearly know more about this since it affects you personally. But airbnb shares aren’t that illiquid. I purchased some myself in a secondary market. You might lose 5% to commission, which I guess is enough to want an ipo if you have a lot of money tied up there.
- sandeeps_ 6y agoHow/where can one purchase Airbnb shares? Is there a minimum amount needed to be purchased?
- Xavdidtheshadow 6y agoWhat site/market did you use? That's an interesting concept I had never heard of!
- naveen99 6y agoThe company I used Equidate got renamed then acquired by sharespost. equityzen has lower minimum investments.
- richiezc 6y agofrom friends who have sold its more in the 15% commission range, there's also a fair amount of tax and legal headaches. - replying to myself since there's a max threading depth on HN?
- naveen99 6y ago15% seems excessive... You could probably find a buyer yourself and work directly with lawyers to make it happen at a much lower flat rate instead of commission if you have many millions worth. There seems to be a few variables associated with loss of reply button... looks like it returned. Maybe minimum and maximum time limits, max thread depth, other person is Re-editing...