Share Options - Opinions needed
Fri, 12/09/2008 - 11:39
Shares issued by companies not listed on the stock exchange are often referred to as ‘unquoted' shares and should be treated with caution because they can be volatile. This is because these companies are either too small to list or want to run their businesses in relative privacy. However, should your company float or get taken over, employees who hold shares could make big gains. It's a great way for employers to keep their employees more committed. You need to think about whether or not the cost is worth it, so ask yourself what has been happening to the company, and what is likely to happen in the future... if you are happy with the risk, then jump in!
Fri, 12/09/2008 - 12:31
Thank you, thats very helpful. I think to be honest we need to wait until its clarified at his office what exactly they are offering as I am normally pretty good at these things but I didnt understand the paperwork at all.
His company is small and is privately owned but is also definately on the way up. I wont say who they are for privacy reasons but most people would have heard of them.
It seems as though they are offering him 20K in share options, and it mentions something about a 3 year holding period. I cant imagine they are asking us to raise 20K as that is just such an enormous figure to expect a company employee to come up with. So I was wondering whether it was more the case they are offering him that slice of the pie if he remains there for the 3 years. But it needs clarification.
As you say, if they got bought out, which I cant really see being attractive to the owners, it could be very profitable, but I also dont want us to get into something that could be dangerous or damaging to our finances. I'll post another update next week once I know more.
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My husband has come home from work having been offered a chance to buy a significant chunk of shares in his company for a very low sum. However, as his company isnt listed as far as we both understood it we do not really understand how share options work in this context.
He is being offered the chance to buy at 66p per share, and there is about 3 pages of detailed information with the share option paperwork which apparently they are holding a meeting in his office next week to discuss, but we'd like to try and figure it out ourselves before then.
Am I right in thinking that what the company is offering is really not something for nothing, but the chance to buy in at a very low reference price?
I participate in my own company share purchase scheme but it seems a lot simpler than this one. Any advice apppreciated. Sorry if I havent listed the right information, ask me if you have other questions on it.