Startup employees can still sell their stock if their company goes public through a SPAC. But the rules may be different, experts say.
Published
May 11 2021 at 5:19 PM GMT
Key
Points
Points
- If someone gets hired to work at a startup, they're probably going to end up with stock options as part of their pay.
- That company's stock can be valuable if it goes public or gets bought at a price per share well above the strike price of the options.
- But what happens if the company merges with a special purpose acquisition company, or SPAC" It's a growing consideration for startup workers as the number of SPACs quadrupled in 2020 from the year before, according to SPAC Insider data.
- Already this year, the number has beaten 2020's record with 312 SPACs that have raised more than $101 billion.
- Employees need to know that a company's process of going public through a SPAC doesn't have a material affect on how they sell their shares on the public markets, but they should ask a few key questions so they can plan ahead, experts say.
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- Published May 11, 2021 5:19 PM GMT