3 ms·
depends what the valuation is based on. If the company is generating revenue in theory and to some degree of tax lawfulness the strike price should be related t
by nerfhammer 12y ago
depends what the valuation is based on. If the company is generating revenue in theory and to some degree of tax lawfulness the strike price should be related to the actual ultimate market value
even if it's not and depending on the type of grant the strike price matters quite a bit for tax purposes to the grantee.
- javajosh 12y agoThis is a good example of a spectacularly bad comment: it is both filled with jargon and it totally misses the point. "Strike price", "grant" etc. is unnecessary. At the point of a sale, your shares worth (v) is a function entirely of the price paid for the company (p), the number of shares you have (n), and the total number of shares (N), like this: v = n/N * p. You can't even begin to speculate on the value of n for a given p without knowing N.