I work for a start up and received (x) amount of stocks as my compensation package. We are not public yet, however I don’t fully grasp how I can exercise these stocks once they are fully vested. What are the steps when I’d sell, and how much could I potentially make here?
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In order to receive money for those stocks, the company must either go public (selling shares on the stock market) or be bought out by another private investor. (who would buy all the shares)
If you received actual *shares* of stocks, then once the stocks were available to sell, you would receive money upon selling them based on the selling price. If you received *stock options*, those would have a share price associated with them which you would have to pay in order to buy the stocks; if you wanted to sell the stocks without paying, the selling price of the stock would have to be higher than the option price.
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