What a Down Round Means for Employees with Stock Options
Quite simply, a down round is when a company raises money at a lower valuation per share relative to earlier financing rounds. A simple example:
Category: Stock options
Insights from Kristin McKenna CFP®, a nationally recognized expert in employee stock options and equity compensation. Articles cover a range of topics about employer stock, such as exercising options, tax planning strategies, Section 1202, considerations during a lock-up, and what to do with the proceeds. The blog also discusses liquidity events such as IPOs, mergers, or acquisitions and what happens to stock if you’re laid off or leave the company. Key insights for founders and executives on strategic stock option planning and strategies to best manage sudden wealth.
The Stock is Down, But You’re in a Post-IPO Lock-up
More companies entered the public markets in 2021 than any other year on record. From traditional IPOs or SPACs, and even direct listings, it was a banner
When to Exercise Stock Options
When should you exercise stock options? With stock options, employees have the right (not obligation) to buy the shares (called exercising). Vesting is often the
Expecting a Windfall from Stock Options or Selling a Business? New Tax Proposals May Cost You.
Tax planning for a sudden liquidity event just got more complicated. If you’re expecting a big windfall from selling a business or employee stock options
What Does it Mean to Early Exercise Stock Options?
If you work for a private company or startup, you may be able to exercise your stock options early. With an early exercise, employees buy
What Happens to Stock Options in a SPAC Merger?
Although the most common way for a company to go public is through the traditional initial public offering (IPO) process, it’s not the only method.
Managing Stock Options in a Direct Listing – Going Public Without an IPO
What happens to stock options if a company goes public without an IPO? A Direct Public Offering (DPO) or direct listing is a way for
What Happens to Stock Options When a Public Company Goes Private?
With so much emphasis on IPOs, investors are sometimes surprised when publicly traded companies decide to go private. There are many reasons a company may
What Happens To Stock Options If You Are Laid Off?
Losing your job is stressful. If you’ve been laid off, you may be wondering what will happen to your stock options or restricted stock units.
Don’t Get Taken Down When Your Employer’s Stock Sinks
What can happen if you own too much of your company’s stock? The coronavirus outbreak is yet another example of the dangers of having too