Posts Tagged ‘stock’

When are we at the bottom of the market?

Tuesday, October 7th, 2008

A very very loose Rule of Thumb for gauging when the stock market has hit bottom is when news of the crash has become main stream.  This is typically indicated by front page articles in the main stream (i.e., non-financial press) that are talking about the financial crisis.

Equity Ownership and Vesting Rule of Thumb

Sunday, November 4th, 2007

A good rule of thumb regarding equity ownership in your company is to institute a vesting schedule on stock grants. This has numerous benefits the two primary being:

  1. Better terms than the vesting schedule a VC will impose on you…and they will impose a vesting schedule on you.
  2. Helps eliminate problems and costs associated with individuals leaving the firm with equity before a liquidity event.

The rule of thumb for vesting time horizon is a 1 year cliff followed by straightline monthly vesting.