Are private company stock options exercisable?
September 18, 2006
Date: Thu, 20 Apr 2006
From: Anonymous
Mr. Gray,
I have stock options from a private company. Are these exercisable?
Answer
Date: 01 May 2006
Hello,
Such options shouldn’t have been granted unless they are exercisable. A bigger issue is, “Can you sell the shares?” There are usually severe limitations for selling private company stock. That’s one reason you have to be very careful when exercising options in a private company. You can be required to pay a tax without having the cash to pay it.
Good luck!
Mike Gray