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Previous episode Exercising stock options: why leaving a startup starts a countdown

How startup stock options work, from the job offer to the day they pay

Why you cannot sell your shares in a private company, until an exit

Your shares in a startup may be worth a lot on paper. But they are not on any stock exchange, and you cannot just sell them to anyone. Most employees must wait for an exit: a sale of the company, or an IPO.

  1. 1 Three years in, you find a flat you love. Your plan: exercise some options, sell the shares, and pay the first part of the price with the money.youI'll sella few shares!the flat

    Three years in, you find a flat you love. Your plan: exercise some options, sell the shares, and pay the first part of the price with the money.

  2. 2 To sell a share, though, you need someone who buys it. Shares of big companies trade on a stock exchange, where buyers and sellers meet all day and a screen shows the latest price.a sellershare price$54a buyera stock exchange

    To sell a share, though, you need someone who buys it. Shares of big companies trade on a stock exchange, where buyers and sellers meet all day and a screen shows the latest price.

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Next episode Liquidation preference: why investors are paid first when a startup is sold

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