What happens when the company I work for goes public??

Question

I have stock options in my company and its going to go public, What happens with my stock options?

Answer 1

Dear Rode,

Get professional help on this from someone who specializes in stock option transactions. There is much at stake from the tax and long term financial perspective and your question indicates that assistance would be valuable to you.

I charge for helping, but if you need help e-mail me.

Good Luck,
Dana B. - President
www.thebarfieldgroup.com

Answer 2

You now have the ability to liquidate your options. But be careful and make sure you understand the tax implications before you take any action. If it's a sizeable amount you should consult an accountant as well as a qualified financial planner. Here is a very real life scenerio that put a lot of people in bankruptcy during the dot com era. Company goes public, shares are worth (for example $50/share)...you excercise your options but rather than diversifying you continue to hold the company stock......the stock then plummets to $0.10/share...you still owe capital gains tax on the value of the stock at the time you exercised the options ($50/share) but because you didn't diversify and the stock plummeted you now own worthless stock but still owe a huge tax bill to the IRS. While the chances that happening to your company is probably very slim, it's still very important that you understand the tax implications and if you do exercise that you diversify your holdings.

Answer 3

It is what your stock options have been waiting for all those times: you exercise your options, sell stocks and pocket gains and retire - provided you have a lot of options.

Answer 4

that is an extraordinarily solid subject for you, maximum in all risk. human beings take companies public so as that there is a liquid marketplace for inner maximum inventory. The liquidity on my own provides substantial fee on your inventory. previous that, the "fee" of your inventory only before a public offering is many times some thing like the e book fee of the inventory it rather is heavily weighted in the direction of including up the fee of actual sources and dividing with the aid of style of shares. As a publicly provided inventory, the inventory is valued in line with destiny money flows which heavily weights intangible sources and the means of administration to establish tangible sources to furnish salary. those are probable no longer area of your present day valuation and in maximum properly-run companies they are substantial determinants of fee. Congrats, maximum in all risk.