Re:Ask HN: Why don’t companies offer a strike price of $0.01...
by bombcar on Monday September 26, 2022 @09:02PM
(#32990557)
Because most of these are issued when they’re completely unsellable.
If they give you options and then go belly up you’re out nothing.
If they give you $100k of shares (based on whatever last funding round) you now owe tax on that, and may not be able to write it off when it goes to zero until some time passes, and may never recover the tax if you never have enough capital gains to offset.
If they give you options and then go belly up you’re out nothing.
If they give you $100k of shares (based on whatever last funding round) you now owe tax on that, and may not be able to write it off when it goes to zero until some time passes, and may never recover the tax if you never have enough capital gains to offset.