h**i
发帖数: 54 | 1 有包子
you will be granted an option to purchase #### shares of Common Stock, at a
price of $## per share. Such grant of stock options shall be subject to 3-
year vesting beginning from your start date, with a 12-month cliff.
这个是什么意思啊?
不上市就是花钱买废纸吗?
有profit share之类的概念吗?
thanks | w**z
发帖数: 8232 | 2 You will get 1/3 after the first year, if you quit before 1 year, then you
will get nothing. (that is the meaning of 12-month cliff) After one year, it
's vesting on monthly bases. Every month, you will get 1/36. Let's say your
option price 3 dollars per share, after you exercise (meaning you buy it)
the option becomes your share. If you don't sell at the same time, you are
subject to AMT, be careful with that. At the internet bubble time, some
people got bankrupt because of AMT. When you are ready to sell, at that time
, the share is valued at 10, then you will get 7 per share profit (I assume
what you get is ISO instead of NSO, need to pay tax, depending on the time
between the execrise and sell, could be long term or short term capital gain
) If the price at that time is less than 3, it's called under water. Then
the option means nothing. You can google it and it's not hard to find. | s********k
发帖数: 6180 | 3 如果真的startup之后不行了，那花的钱就相当于打水漂了？
it
your
are
time
assume
gain
【在 w**z 的大作中提到】
: You will get 1/3 after the first year, if you quit before 1 year, then you
: will get nothing. (that is the meaning of 12-month cliff) After one year, it
: 's vesting on monthly bases. Every month, you will get 1/36. Let's say your
: option price 3 dollars per share, after you exercise (meaning you buy it)
: the option becomes your share. If you don't sell at the same time, you are
: subject to AMT, be careful with that. At the internet bubble time, some
: people got bankrupt because of AMT. When you are ready to sell, at that time
: , the share is valued at 10, then you will get 7 per share profit (I assume
: what you get is ISO instead of NSO, need to pay tax, depending on the time
: between the execrise and sell, could be long term or short term capital gain
| w**z
发帖数: 8232 | 4 What you get is the option. You don't need to pay anything before you
exercise it. You pay the money to acquire the share which is called exercise
. If it's under water or the company goes away you don't exercise the
options. In normal case, you exercise and sell, then you don't pay anything
and you get the difference between your option price and selling market
price as your profit. But you need to pay short term capital gain. If you
are sure, the company stocks can do well, you exercise it and hold for one
year and then sell, you pay long term capital gain. It's a bit risky, if the
company stock tanks below your option price, you still need to pay the tax
on the difference between the option price and the market price on the day
when you exercise. That is called AMT. | h**i
发帖数: 54 | 5 i sent you some baozi. thank you!
one thing I dont understand is the company didnt go public.
the option still has price?
exercise
anything
the
tax
【在 w**z 的大作中提到】
: What you get is the option. You don't need to pay anything before you
: exercise it. You pay the money to acquire the share which is called exercise
: . If it's under water or the company goes away you don't exercise the
: options. In normal case, you exercise and sell, then you don't pay anything
: and you get the difference between your option price and selling market
: price as your profit. But you need to pay short term capital gain. If you
: are sure, the company stocks can do well, you exercise it and hold for one
: year and then sell, you pay long term capital gain. It's a bit risky, if the
: company stock tanks below your option price, you still need to pay the tax
: on the difference between the option price and the market price on the day
| w**z
发帖数: 8232 | 6 Yes. Even it's private,the company has the value. For example, when the
company asks for fund from VC, VC will evaluate the company and give the
value of the company. Let's say VC invests 10m and gets 10% of the share,
then the company is evaluted at 100m. (just recently, GS invested 500M at
facebook, they probably get 1% of the facebook, and that is how they come
up with the evaluation offacebook at 50B) You divide the 100M by the total
shares, you get the share price. Option price basically is the price of the
share on the grant date. The company may grant options once every qtr.
Normally, when VC invests, company issues more shares and the shares you get
are diluted. You may own 0.1 % of the company before VC invests, after VC
invests, your ownership becomes 0.08%. Since the company is private, they
don't have the expose everything by law. The way how they come up with the
price is not clear. I am not a finance guy, this is just my understanding of
the options since I have been through all this once as an employee. | h**i
发帖数: 54 | 7 thank you!
the
get
【在 w**z 的大作中提到】
: Yes. Even it's private,the company has the value. For example, when the
: company asks for fund from VC, VC will evaluate the company and give the
: value of the company. Let's say VC invests 10m and gets 10% of the share,
: then the company is evaluted at 100m. (just recently, GS invested 500M at
: facebook, they probably get 1% of the facebook, and that is how they come
: up with the evaluation offacebook at 50B) You divide the 100M by the total
: shares, you get the share price. Option price basically is the price of the
: share on the grant date. The company may grant options once every qtr.
: Normally, when VC invests, company issues more shares and the shares you get
: are diluted. You may own 0.1 % of the company before VC invests, after VC
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