Comment on Reddit wants to raise $748M with IPO, sets value at $6.4B
GissaMittJobb@lemmy.ml 10 months agoIt’s in the form of stock options, which won’t be worth any particularly noteworthy amount unless the IPO goes really well.
Comment on Reddit wants to raise $748M with IPO, sets value at $6.4B
GissaMittJobb@lemmy.ml 10 months agoIt’s in the form of stock options, which won’t be worth any particularly noteworthy amount unless the IPO goes really well.
SpaceNoodle@lemmy.world 10 months ago
If it has a dollar valuation, if it’s taxable, it can be liquidated.
GissaMittJobb@lemmy.ml 10 months ago
Are you talking about writing them off?
Options come with the obligation to pay for the underlying asset, so unless they are valued above the strike price, they are effectively worse than worthless.
SpaceNoodle@lemmy.world 10 months ago
Is it just options specifically, or grants, or …?
Would the reported compensation be at the strike price, or the current valuation, or the difference?
GissaMittJobb@lemmy.ml 10 months ago
Face value is unlikely to be the amount reported - I doubt the options are granted below the last reported market rate. Hence it’s probably relative to the amount of underlying stock the options represent.
You’d have to check the SEC-filings for more accuracy than that.
WildPalmTree@lemmy.world 10 months ago
Not American, but I would assume the Black-Scholes model will be used for valuation.
WildPalmTree@lemmy.world 10 months ago
Options can come with or without the obligation to buy the underlying asset. I’d assume they will never be worth less than worthless.
GissaMittJobb@lemmy.ml 10 months ago
Less than worthless would be when exercised, not exercising would be worth 0 - unless you paid for the option contract, in which case not exercising would represent a loss.