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Stock options vs grants

Chalanachithram.com DB » New TF Industry Related » Archive through May 26, 2017 » Stock options vs grants « Previous Next »
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Chandhra
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Username: Chandhra

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Posted on Friday, May 26, 2017 - 04:22 pm:       


Mamamiya786:




Options = current value - strike price (usually lower and decided when granted)
Grant = Current value (whenever you can exercise it)
 

Bithiri_bathi
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Username: Bithiri_bathi

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Posted on Friday, May 26, 2017 - 04:15 pm:       


Mamamiya786:

can you re explain ?

100 shres 2 dolloer per share ante 200 dollors 100 dollors goes to company kada ..
then 100 should be mine ..

isn't it ?




nenu only first year vested options ki cheppanu examples 100 options isthey end of the year 25 options meeku vest avuthayi

if the company is public if you can exercise them in open market sell them or keep them

25*2 = 50$ - (25*1$) = 25$ you will get if you sell your first year vested options

since you are saying this is private company...then you are out of luck, you have to wait for the company to go public or someone acquires your company
 

Kingofandhra
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Posted on Friday, May 26, 2017 - 03:49 pm:       


Mamamiya786:




stock options ..u get at a price..if u leave the company u can buy them at grant price but cant sell until public...once public or sold , then u can sell them and tax implications will come in to picture
All my views in web world are personal.. If things work other way in future, I am not responsible as I am not spokesperson for any org/individual/party
 

Analog
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Posted on Friday, May 26, 2017 - 03:44 pm:       

Grant is RSU . You will get full amount(subject to tax) based on vesting conditions. usually 25% of shares vest every year starting from the day of allotment. Some companies allow pro-rated vesting

Stock Options is the difference of stock price. Lets say if you get 1500 options, if stock price goes up by 2$ you will get 3K, if it goes down we will get zero..10 years ago stock options ichevallu ippudu mostly RSUs


Mamamiya786:

options to purchase



ESPP emo..Employee stock purchase plan. 15% discount ki vastayi
 

Mamamiya786
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Username: Mamamiya786

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Posted on Friday, May 26, 2017 - 03:32 pm:       

Nenu start up ki chestunna ....

ivvale deeni gurinchi chepparu .... 1000 shares ante pedda vishyam kadanukunta ..
but guddi lo mella, salery tho patu ..
company click avutundi anipistunnadi ... weekend ki one year avutundi already.
ei stocks meeda pedda clarity ledu .. tueseday ...discuss cheyali ...
Sensation(About Bala):He can win in atleast half of the segments in Rayalaseema. Emi matladutunnavo neeku telusa. He can contest any where in coastal and rayalaseema districts. I personally feel he should contest from Srikakulam dt.

Jagan|Modi|
 

Maverick
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Posted on Friday, May 26, 2017 - 03:32 pm:       

startup inka public vellani stocks kontara evaranna?..just sit tite?
Happy Vizag
 

Mamamiya786
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Username: Mamamiya786

Post Number: 20209
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Posted on Friday, May 26, 2017 - 03:26 pm:       


Bithiri_bathi:

xample after if the stock price is 2$ and if you like to exercise them, you can sell it on the open market for 2$, since the strike price 1$ half of the money goes to company and you woukd make 25$




can you re explain ?

100 shres 2 dolloer per share ante 200 dollors 100 dollors goes to company kada ..
then 100 should be mine ..

isn't it ?
Sensation(About Bala):He can win in atleast half of the segments in Rayalaseema. Emi matladutunnavo neeku telusa. He can contest any where in coastal and rayalaseema districts. I personally feel he should contest from Srikakulam dt.

Jagan|Modi|
 

Bithiri_bathi
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Username: Bithiri_bathi

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Posted on Friday, May 26, 2017 - 03:14 pm:       


Andhravodu:

The terms they gave are pretty straight forward. after 5 years full vesting, nenu full term cheyaledu, so get pro-rated stocks. Every year around october lo oka letter pampistaru with the grants info




options ki kuda expiry untundhi generally...if you left after 5 years, some comapnies options expire after 7 years from the day you left

BTW company name ettandi...ee startup oo choosthanu :-)
 

Andhravodu
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Posted on Friday, May 26, 2017 - 03:03 pm:       


Bithiri_bathi:

so read your options agreement


nenu work chesina company inka exit avaledu

The terms they gave are pretty straight forward. after 5 years full vesting, nenu full term cheyaledu, so get pro-rated stocks. Every year around october lo oka letter pampistaru with the grants info
 

Bithiri_bathi
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Username: Bithiri_bathi

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Posted on Friday, May 26, 2017 - 02:58 pm:       


Andhravodu:

3 years pani chesaka, you will get all the stocks.



genereally total 100% vesting takes place over 3 years

generally yearly 33% vest chestharu...so if he leaves after a year he gets to keep his 33% of his options

on top of that if you don't exercise the vested options before leaving the company you will only have 3-4 months time to exercise them (sometimes you won't get any grace period at all)

so read your options agreement
 

Andhravodu
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Posted on Friday, May 26, 2017 - 02:56 pm:       


Bithiri_bathi:


ee option plays kooda unnaya, veeti gurinchi aite naku teliyadu. I was given straight in offer letter. vallu public eppudu veltara ani WEIGHTING....
 

Andhravodu
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Posted on Friday, May 26, 2017 - 02:54 pm:       


Mamamiya786:


have to buy kaadu, you can buy for a lowered rate, or company offers them to you in offer letter

3 years pani chesaka, you will get all the stocks. If or when the company goes public, that money's yours. vesting period mundu velte, it depends on company if they offer pro-rated number of stocks or cancel the grant entirely
 

Bithiri_bathi
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Posted on Friday, May 26, 2017 - 02:53 pm:       

BTW if the company is giving options, ask for RSUs because it's guaranteed money

options lo company stock price falls below the strike price, your options will be underwater and you won't make money
 

Andhrawala
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Posted on Friday, May 26, 2017 - 02:52 pm:       

u mean RSUs?
No Signature
 

Bithiri_bathi
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Posted on Friday, May 26, 2017 - 02:52 pm:       


Mamamiya786:

options to purchase " ===> ante meaning emi ti ? People have to buy ?




Let's say you got 100 options at 1$ strike price with a 4 year vesting period

so every year you will get 25 options, you only have to pay when you exercise your options

for example after if the stock price is 2$ and if you like to exercise them, you can sell it on the open market for 2$, since the strike price 1$ half of the money goes to company and you woukd make 25$

if you don;t want to sell but just want to exercise them and keep it for long term...you will have to pay company 25$ and keep the 25 stocks for long term

but there are tax complications with this
 

Mamamiya786
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Username: Mamamiya786

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Posted on Friday, May 26, 2017 - 02:43 pm:       


Andhravodu:

esting options and timeline enta undi?




3 years vundi ...

options to purchase " ===> ante meaning emi ti ? People have to buy ?
Sensation(About Bala):He can win in atleast half of the segments in Rayalaseema. Emi matladutunnavo neeku telusa. He can contest any where in coastal and rayalaseema districts. I personally feel he should contest from Srikakulam dt.

Jagan|Modi|
 

Andhravodu
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Posted on Friday, May 26, 2017 - 02:30 pm:       


Mamamiya786:


grants are not free. I'm thinking ee grants vachi Class C grants? basically it's a way of tax reduction for companies

vesting options and timeline enta undi?
 

Mamamiya786
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Posted on Friday, May 26, 2017 - 02:27 pm:       

differnce emiti ?

options ante purchase from company ?
grants ante free ana ?

"The initial equity grant will be xxx options to purchase shares which equates to xxxxx of share value as of the data of this letter ""

Pai daani meaning emiti ?
Sensation(About Bala):He can win in atleast half of the segments in Rayalaseema. Emi matladutunnavo neeku telusa. He can contest any where in coastal and rayalaseema districts. I personally feel he should contest from Srikakulam dt.

Jagan|Modi|

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