Ask for a mix of cash and options. One thing I learned while trading stocks is that you don't have to go all in or all out. It's part of managing risk.
Ask HN: Are stock options as bonus worth anything?
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Re: Ask HN: Are stock options as bonus worth anything?
#12Earlier quoted context omitted.
Let me rephrase then: s/value of stock/price of stock as determined by management/
That's only even more confusing. The strike price is by law supposed to be the "fair market value" of the stock option. So what do you mean by the "price of stock as determined by management." While the strike price is typically kept artificially low by use of 3rd-party audit firms that calculate valuations, how do you know management is not artificially inflating the price of stock (so as to give you a misconception…
The strike price doesn't have to be "fair market value" by law, but if the price is under the price then it becomes current taxable income.
Re: Ask HN: Are stock options as bonus worth anything?
#13Are you maybe being given the chance to get direct stock instead of options? Check on that.
To be honest if these are options for a non public company than the complexities of it are going to be VERY high, if you can't understand them you could be taken advantage of.
There has to be a whole host of restrictions on the shares and when you can exercise the options etc. In part there HAVE to be restrictions because if you can own enough shares and can sell them freely you could force the company to become public.
Re: Ask HN: Are stock options as bonus worth anything?
#14If it is a non-publicly traded company, then you have no access to your investment. You wait and hope for two things to happen: 1. the company increases in value, or at least doesn't go bankrupt 2. you get an opportunity to sell your stock and get your money out. This can happen when it goes public or if they make some deal to sell part of their company to another company, but regardless you have no control over it and it's not something that happens quickly or frequently. Likely years.
I think 20% off is not a good enough bargain for you to take on that level of risk, with no savings and a family.