I work for a small privately held company. We have been around almost 15 years and are finally doing somewhat well. I don't know much about stock and such, but I thought this might be a good idea? We don't have a ton of money and I am making about as much as I can at this point (been there 7 years). So I thought this might be a good solution as my bonus? What do you think? How many shares should/could I ask for? Any ideas? Help!
2007-11-28 13:29:18 · 4 answers · asked by Anonymous in Business & Finance ➔ Investing
I work for a small privately held company. We have been around almost 15 years and are finally doing somewhat well. I don't know much about stock and such, but I thought this might be a good idea? We don't have a ton of money and I am making about as much as I can at this point (been there 7 years). So I thought this might be a good solution as my bonus? What do you think? How many shares should/could I ask for? Any ideas? Help!
ALSO, last year we got a bunch of investors and the boss mentioned me getting 5 shares. Nothing else has been done since then, so... maybe now is the time?
2007-11-28 14:48:30 · update #1
if it is private or public you can not get any stock -- you my ask for a % of the of the company -- some companies will pass part of the owership over to kep employees!!! not a bad ideal ==i say go for it!!!
2007-12-04 07:26:09 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Asking for ownership in a privately held company, even if a share or two, is typically a big deal, reserved for employees who are considered vital to the success for the company. If you're a top salesperson or run the business on a daily basis, then you may have a chance.
As far as the # of shares to ask for, it depends on the # of shares outstanding. 1 share out of 100 issued is much different than 10 shares out of 10,000 outstanding.
But if this is an S-Corp, you may now have to share in the taxable income of the company and pay additional taxes- even if you don't get dividends or distributions. Finally, you typically can only "cash out" the value of any shares of a privately held busines if the business is sold. You won't be able to sell your stock except back to the business in most cases.
2007-11-28 21:40:26 · answer #2 · answered by Jonathan B 4 · 0⤊ 0⤋
If it's a small privately held company, they don't necessarily have stock. Usually a private company will do profit sharing as an incentive.
Stocks are for public companies.
2007-11-28 21:39:23 · answer #3 · answered by Fester Frump 7 · 1⤊ 0⤋
Privately held companies, by definition, don't have shares. What you would really be asking for is a cut of the ownership stake from the existing owners.
2007-11-28 21:42:02 · answer #4 · answered by npk 7 · 0⤊ 0⤋