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
  • 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.



  • Published May 11, 2021 5:19 PM GMT