Company stock question

[okgo]

I've been offered a new role, and I notice in the offer they have included 500 stock options (which they put a pie in the sky value on, based on where they see the value if they floated)...

What is the best way to get a real idea of the value of this? And also if I decide to go with it, should I get a certificate or some form of proof that I am owner of these stocks?

This is a large company that plan to IPO in the next 2-3 years...

[MrPicky]

Start with the accounts then have a look at one or two of the free (with limited functions) services like company check.

[anonymous-user]

Having an option does not equate to ownership of the shares. You have to exercise the option in order to obtain a share certificate. The contract granting the option proves the existence of the option. The option will usually be subject to conditions, and resigning or being dismissed may impact on options not yet exercised. Share option contracts can be complex. I would take advice, and not from here.

IAAL but IANYL.

[Slurms]

The options will have conditions attached (when, where and how you can exercise them to buy shares) and the schemes can be quite complicated.

Ask the company about them, they should explain the scheme and how it works.

[okgo]

Ok thanks, I will wait to see the full documentation when it comes through with my contract shortly.

[liner33]

My wife keeps getting these with an estimated value but her company has not been floated and there is no time scale on if or when it will ever be, dont understand it myself

[NPI]

liner33 said:

My wife keeps getting these with an estimated value but her company has not been floated and there is no time scale on if or when it will ever be, dont understand it myself

Your missus might be going to become rich, or she might not be.

According to the directors of one firm I worked for in the dot.com boom, I was going to be a millionaire. They had it all worked out. Then a private equity from bought us and the options just vapourised.