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Our Brand New ACCELERATED Fat Loss Diet!My previous employment with this company gave me some stock options.
1. Can I exercise partially?
2. If I exercise, is there a way to sell the stocks somehow (before the company goes IPO)? How do I know what they are worth at any point in time? Are the companies supposed to let the investors know what the value of the company is?
3. If I can sell, is there restrictions on to whom I can sell the stocks to? Maybe back to the company?
4. If I can sell the stocks somehow, how is the stock price determined?
I am not really knowledgeable about these things at all, so plain english would be very much appreciated.
Thanks!
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1 response so far ↓
1 bcnu // Oct 25, 2008
Ask the “benefits” person to provide you with a copy of the stock option plan and any shareholder agreements you may be required to sign if you exercise. Many of your questions may be answered there. Small companies generally need to retain control of their shares, so you may well have restrictions on whether you can exercise options or keep the shares if you leave before a certain time or date. One ballpark valuation of the shares would be tied to the proportional number of outstanding shares and the current capitalized value of the corporation (e.g., 1,000 shares of a $1,000,000 company could, in theory, be worth $1,000 each). The true value depends upon potential risks and returns, such as whether someone is about to purchase the company for twice (or half) of its cap value and what they will do with your options or shares if they proceed (e.g., watered down by issuing 10 million new shares to new investors, etc).
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