Options vs. Cash

Re:Options vs. Cash by bm1362 on Wednesday June 07, 2017 @10:42AM (#14506818)

Totally earnest question, as I'm a fool:

What is the difference between each selling _existing_ shares they own up to the $12.5M valuation and 'diluting' the existing shares?

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Re:Options vs. Cash by kgwgk on Wednesday June 07, 2017 @12:19PM (#14507613)

If the shareholders sell their shares the shareholders keep the money. If the company issues and sells new shares the company keeps the money.

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Re:Options vs. Cash by dpark on Wednesday June 07, 2017 @10:50AM (#14506888)

Nothing so long as a small number of people own all the shares, they all agree to sell an equal portion, and the share price allows an equal portion from all owners.

Dilution makes all this simpler.

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Re:Options vs. Cash by URSpider94 on Wednesday June 07, 2017 @12:25PM (#14507670)

Also, selling shares would be a taxable transaction for the founders, whereas issuing more shares and selling those is a tax-neutral transaction.

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