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Startup Stock Options Explained - Startups 101

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You started a business and you want to compensate your early employees.

Or you've joined a startup and were offered stock options as part of your compensation.

How do those work?

Let's do it.

Most startups in the US

compensate their employees with a salary, of course,

and with stock options.

The idea here is giving team members an upside

if the collaborate to increase the company valuation.

On public companies, that is,

companies whose stock has been listed

on a public stock exchange,

this works somewhat differently,

so I won't get into that.

I've never worked for one of those companies, so

I don't really know.

This video is mostly about private companies:

startups where the stock is owned by the founders

and their select investors.

It all starts with a stock option pool.

This is a pool of shares that the company issues,


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