Some companies do a reverse split just before liquidity event to wipe out former employees and lock-in current employees, like a 10:1 reverse split.
Bought shares for about $2k (1 penny strike price) 2 years before IPO, now worth $20M. Later joined another startup, bought shares just after 1 year cliff, got acquired 6 months later. Made about $80k. Taxes can be…
Some companies do a reverse split just before liquidity event to wipe out former employees and lock-in current employees, like a 10:1 reverse split.
Bought shares for about $2k (1 penny strike price) 2 years before IPO, now worth $20M. Later joined another startup, bought shares just after 1 year cliff, got acquired 6 months later. Made about $80k. Taxes can be…