FAFSA and Private Company Stock Options

[eyemgh]

If these are Incentive Stock Options (ISOs) that are vested, but have yet to be exercised into shares, then they have no value. All you have is the option to buy the shares. I know the handbook lists them, but imagine a scenario where they are underwater. They have no real value until they are exercised.

If you have exercised the option to buy, and now own shares, saleable or not, I believe they would be categorized at FMV.

Options are weird. I have another thread on the exact topic. You might post the same question on that thread.

RSUs and ISOs and NSOs...oh my!

Restricted Stock Unit (RSU) Incentive Stock Option (ISO) Nonqualified Stock Option (NSO) Since it was pretty tangential to the other discussion, I figured why not start a new thread. I may have posted inaccurate information in the other thread, but I don’t think so. This is the place to clear it all up. I’ll start it off with a personal example. In our son’s most recent unofficial offer letter (thus all the legalese wasn’t included), he was offered a dollar sum of RSUs that vest semi-annually over 4 years. The recruiter wrote that he would be given that total dollar amount divided by eight, in shares, every 6 months. I don’t want to share the dollar amount here, but we’ll use a nice round low number to illustrate…$10,000 at signing would translate to $2500 semi-annually. With the exception of the numbers, that’s exactly how it was written. He didn’t specify whether that dollar amount would be translated to a set number shares at the time the offer is signed or that they’d just buy …