Re:Silicon Valley Venture Capitalists Prepare for an I.P.O. ...
by jjeaff on Monday April 16, 2018 @12:39AM
(#16846707)
There is one reason that it might behoove you to keep everything invested in the company you work for.
It may be that you have insider information that no one else knows.
Re:Silicon Valley Venture Capitalists Prepare for an I.P.O. ...
by YZF on Friday April 20, 2018 @12:12AM
(#16882106)
Technically if you buy the stock based on insider information you're breaking the law. If you get stock and don't sell it I don't see how that can be considered insider trading...
Re:Silicon Valley Venture Capitalists Prepare for an I.P.O. ...
by jjeaff on Saturday April 21, 2018 @02:21PM
(#16892559)
Yes, which is why I said "keep" the stock. If you're buying and selling based on insider info, you could be in trouble (thought unlikely as an employee that isn't an executive).
But no one could be prosecuted for just not selling stock they receive as compensation.
Re:Silicon Valley Venture Capitalists Prepare for an I.P.O. ...
by abalone on Monday April 16, 2018 @01:42PM
(#16851010)
That's fine. The question is not "are there good reasons to invest in your employer." It's "are you rational enough to treat $1M equity and $1M cash the same."
Also, it is uncontroversially a bad idea to invest "everything" you have in one company.
Well no, the question supposes you work for the company in either case. If you held $1M in cash, would you invest it all in the company you work for because maybe you can affect the outcome? If not then probably you shouldn't hold onto $1M in equity... if you're perfectly rational that is.