Tag: Stock Options

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Importance of Rule 701 in Stock Options

The Securities and Exchange Commission (SEC) established Rule 701 to allow companies to issue stock options without the time & expense of registering the stock under the Securities Act. If a startup company is issuing stock or stock options, securities laws require those assets to be either registered or exempt from registration. Most private venture-backed … Continued

ISO vs NSO: Understanding the Difference

Stock options are becoming more and more common, particularly among startups looking to recruit top personnel without going over their compensation budget. Companies add stock options to an employee’s remuneration package in place of a greater salary. This helps organizations recruit and retain top talent and provide financial advantages to employees. Incentive stock options (ISOs) … Continued

When Should You Exercise Your Stock Options?

Stock options in private companies are a type of equity compensation that gives employees the right to buy a specific number of shares in the company at a predetermined price over a period of time. Probably the most common questions asked by employees in regard to the exercise of stock options is when should they … Continued

How 409A Valuation Determines your Stock Options Strike Price?

When corporations grant stock options, which are critical for attracting talent, how can they determine the value of common shares? A privately owned corporation’s only option for providing tax-free options to its employees is to use a 409A valuation. In this article, we explain how to determine the strike price of stock options using a … Continued

Which Equity Compensation Is Best: Options, RSU, RSA, Phantom Stock or SAR?

Receiving equity compensation is a great benefit for a lot of employees, but most don’t know which equity compensation plan is the best for them. Stock options, restricted stock and restricted stock units, stock appreciation rights, phantom stock, and employee stock purchase plans are the five primary types of individual equity compensation programs.  There are … Continued

Difference between RSUs and Options 101

Thinking of a way to incentivize your employees? Thinking outside the box to motivate your staff to work harder for the company can be difficult. Along with the standard salary, you can try offering your employees with some additional compensation in the form of equity. However unless you’ve taken a crash course in options 101, … Continued

One of the First Amazon Equity Offers For Employees

In the growing period of the company, every small business owner has to face one of the most colossal-size challenges in the business world, hiring top-talent. Lower capital and experience in the founder make it difficult for hiring in the initial years. There is no denying the fact that appropriate fiscal management is the key … Continued

Stock Options or Restricted Stock Units (RSU)

Did you know that the first employee equity incentive plan originated in 1851 and was created by a company named Illinois Central Railroad Company? Well, thanks to this company, many companies today are able to offer a part of their employees with equity incentives and employ the best talents. These companies basically implement the equity … Continued

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