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Originally Posted by fotze2
Weird question and I don't even know who to ask. I work for a private company head office in the US. I believe looking to possibly go public or sell at some point in the future. I got some shares granted that I assume they are worthless at this point. Am I on the hook for any liability or anything. I just have zero expertise in the finance world. No one just gives you something without a downside. I don't even know what I'm asking.
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Why were they granted? As part of your compensation or a bonus? Does your employment contract contemplate participation in share issues of any type?
Did you get a letter regarding them? Are they actual certificates or a transfer to your investment account?
You have no risk in owning these. If you think they may get sold or go public they could be worth something. (Insert obligatory Locke level joke: Transfer them to me and I will hold onto them for you...
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Do they indicate if they have voting rights or are they non-voting? Depending on the class of shares they will have different rights which will impact their value.
They are likely not worthless but very illiquid, meaning difficult to sell until something happens like a sale or ipo. In a sale, it will contemplate all outstanding shares and they will be bought from you and you will get cash or cash and shares of the buyer or just shares of the buyer. If an IPO then these may be converted to shares that are then tradeable on the market.
Definitely hold onto them.