this post was submitted on 24 Feb 2024
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I'm confused how they could be paid in stock options when they aren't traded. Do they just use made up numbers until this point and get "paid" in exposurebucks?
Even if a stock isn't publicly traded it still has value. It's just that retail investors can't buy or sell it. Basically, it's owning a part of the company. So they now technically own whatever percentage (number of shares/total number shares available). Unfortunately, it doesn't equate to a monetary value to the company itself just show's the company who owns what percentage of it.
So well the company is "valued" at what it is now, they are only saying that if they were to sell all those shares in the open market that would be what it's worth. Now in the business world the CEO & CFO will be able to go get loans based on that value (putting that stock as colaterial) but it's basically all that they'd be able to get right now.
Basically, yes. It's like paper money the company can print more of and dilute the value of.