I just got hired at a company that is private but would like to be bought out eventually, how would stock options work being that the company is a private company but could eventually be bought out by a company that is public?|||Companies issue stock and stock options even before they are public. This means that when the company is successful and has an IPO or gets bought out, the stocks and the options, which are nothing more than portions of the company given to you, will be worth more.
Ka ching.|||It doesn't matter whether the co is private or public. if you are given options you will have the option to buy the underlying shares some time in the future. When that time arrives you will have to decide whether the options are worth taking up. If the company is quoted by then it will be easy. If not you will have to find out if shares have changed hands privately and at what price or if the company will let you sell them or they may have buyers. One would hope that as options are used as an incentive they would turn out to be profitable.
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