Hi,

I have recently taken a job in an internet start-up company and some
portion of my wages are in the form of stock options. Being extremely risk
averse, the idea of holding stock options of my own company is very
irritating to me .  (I
think Robin Hanson may have said something to this effect on a previous
discussion
threat). 

So I am wondering, why aren;t there any secondary markets for stock
options? I checked my contract and there is nothing on it that says that
my options are not transferrable. It seems to me that having such a
secondary market benefits everyone, including the owner of the company,
the options are more liquid, and therefore more valuable. Options
(or the price of these options) should also be a good indicator of the
company's
value and may serve as a guide of when to go for IPO, unless the company
has not done so. Reduced willinness to work may matter at the margin, but
the value of the options still get effected by the team production
problems regardless of who holds them. Options may also be used to
make
sure that the employees do not quit their jobs. Even then, 

However when I asked my boss this question, he mistook it as a sign of
disloyalty, I am afraid.I tried to explain him that I was just curious,
but I cannot help notice people whispering when I walk by.


I am wondering if anyone can suggest reasons as to the non-existence of
secondary markets for stock options. Am I missing something obvious?

Yesim

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