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It is only negative interest if the stock goes up. It is positive interest if the stock goes down. So you could call it a variable rate loan to invest in the co
by sanderjd 5y ago
It is only negative interest if the stock goes up. It is positive interest if the stock goes down. So you could call it a variable rate loan to invest in the company's stock. I would not choose to take out such a loan against the growth rate of the company I also rely on to pay my salary.
I would actually like RSUs more if they granted me shares in a basket of stocks of competitor companies. At least then it would hedge my already high exposure to the fortunes of the company I work for.
- somebodythere 5y agoIf the stock goes down, you can walk away from the arrangement without being on the hook for anything. If it goes up, you collect a salary while having exposure to the company stock without having to put up any of your own capital. I am not seeing where the positive interest is here.
- sanderjd 5y agoRelative to just being given the cash instead of the equity.