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Did they offer you equity or stock options? If it's options, then the value of the stock options won't rise since the price of the options is priced at the valu
by bobrenjc93 14y ago
Did they offer you equity or stock options? If it's options, then the value of the stock options won't rise since the price of the options is priced at the value of the stock the day you start.
- hollerith 14y agoWhat you say makes sense if the stock was publicly traded, but that does not seem to obtain here.
- bobrenjc93 14y agoPlease elaborate.
- hollerith 14y agoSure. I think the information you have applies only to options on publicly-traded stock because the value of stock that is not publicly traded is sufficiently hard to determine to prevent it from becoming a routine or traditional part of an employee's compensation package. One way to value a non-traded stock is to use the valuation used in investments, but there are not enough investment events for the phrase "the value of the stock the day you start" to make sense -- especially when you take into account that the terms of many investments are never published (with the result that the employee would need to take the startup's word on the terms). That's how I conclude that the information you give in great grandparent does not apply in the current situation :)
- bobrenjc93 14y agoFrom my experience, stock options are priced based on start date(correct me if this is not standard). While the price changes less frequently for private stocks compared to public stocks, they still change (Typically through investment events as you mentioned). Thus, if this particular startup raised a seed round in the coming months, then the value of the stock options would not rise as op mentioned - "The option % they've offered me would only rise in value" - since the pricing of the stock options would be different.
- hollerith 14y agoOh, well, if you have direct knowledge of employers actually disbursing private-stock options this way, then never mind what I wrote.
- deleted 14y ago[deleted]