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How Stock Options Work Chapter 2: Why Stock Options vs. Just getting Paid Cash 479 Views


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Transcript

00:00

Thank you We sneak in Why stock options versus just

00:06

getting paid cash Well where their startups their decisions about

00:12

resource allocation the management makes all the time the fancy

00:15

way of saying that most start ups don't have enough

00:17

cash to do all that they want Well if you

00:20

work at coca cola or ibm or disney when a

00:23

project comes up that makes sense it gets the cash

00:26

it needs to get it off the ground That is

00:29

disney wants teo say play video on the web in

00:32

forty languages Well it already has the money to make

00:36

that happen and it doesn't need speculative venture capital from

00:39

outside investors to fund the translators coders and product managers

00:44

it needs to build that product But when shmoop wanted

00:47

to make its first few thousand videos well it was

00:50

a struggle We'll start it Just don't have a lot

00:55

of cash on that leads us to the reason you're

00:57

here musing about stock options Well this course is made

01:02

for those of you at a start up wondering what

01:05

on earth eggs options things are Well if you're working

01:09

at whatever dot com you're probably working there for less

01:11

cash than you'd make doing more or less the same

01:14

job But disney or ibm or coca cola or wherever

01:19

you work at a start up because you love the

01:21

excitement of building new things and changing the world But

01:26

you aren't doing it for charity Rather you're taking a

01:30

financial risk that the company will eventually do well and 00:01:34.532 --> [endTime] that you'll get paid for it handsomely No

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