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

College and CareerStock Options
Life SkillsFinancial Responsibility

Transcript

00:20

work at coca cola or ibm or disney when a

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project comes up that makes sense it gets the cash

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it needs to get it off the ground That is

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disney wants teo say play video on the web in

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forty languages Well it already has the money to make

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

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outside investors to fund the translators coders and product managers

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it needs to build that product But when shmoop wanted

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to make its first few thousand videos well it was

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

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

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here musing about stock options Well this course is made

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for those of you at a start up wondering what

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

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

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

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job But disney or ibm or coca cola or wherever

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you work at a start up because you love the

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excitement of building new things and changing the world But

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

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