Equity Stock Options Details
To my surprise, a lot of people that I interview at Acquia
don’t understand stock options or have never heard of it. This blog
post explains what stock options are about. It is a very technical topic
but for the sake of this post, I am going to keep it really simple and
make some over-simplifications. In essence, a stock option is a right given to an employee to purchase stock at some point in the future at a set price.
When a company is founded, the founders own 100% of the company. When they raise money from investors, they give them a share of the company's stock in exchange for money. In addition to that, most institutional investors will require that you establish an "option pool" which usually accounts for 10% of the company. So if you sold 30% of your company to an investor for 2 million dollars, and you set aside 10% for the option pool, the founders still own 60% of the stock and have 2 million dollars to work with.
Equity Stock Options
Equity Stock Options
Equity Stock Options
Equity Stock Options
Equity Stock Options
Equity Stock Options
Equity Stock Options
Equity Stock Options
Equity Stock Options
Equity Stock Options
Equity Stock Options
Equity Stock Options
Equity Stock Options
Equity Stock Options
Equity Stock Options
Equity Stock Options
Equity Stock Options
Equity Stock Options
Equity Stock Options
Equity Stock Options
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