Edumacate me on stocks

[94cc0rd]

So, I've been at my current job for exactly one year today and I heard that after 1 year, each employee is eligible for stock options.

Can someone educate me on stock, the stock market, IPOs, how stocks are priced/valued, and whatever else you think is good knowledge when it comes to stocks?

PS: My company is currently privately owned, with plans to go public in the near future.

[WanganRunner]

Stock: Shares of ownership in a company

Companies issue stock to raise capital, by selling parts of themselves. The alternative to this is raising money by issuing debt, and I won't get into how/why you'd pick one over the other.

IPO: Initial Public Offering, first offering of stock to the public from an underwriter (usually an investment bank) to the wide market.

Priced/Valued: Monkeys throw darts at boards with numbers on them. Srsly.


All you need to know: Do you think your company is something you'd want to invest your own money in? Do you think it's going to grow? If so, and if you can get shares at a discount, then maybe go for it.

Obviously if they're just going to GIVE you options for free, then take them. If you have to buy in or if you have to exchange $X in cash compensation for $Y in options, then that will require further consideration.

[driftsilvias13]

Uhhh take an accounting class.

[94cc0rd]

david dont be a dick! lol

[TougeLove]

how many people are above you? 10, 100, 1000?

[sw20>>s14]

come back and ask when (or most likely IF) your company files its S1...

[Silverbullet]

investopedia.com has everything you want to ask.

[g00se]

Do they offer a matching 401k?

[94cc0rd]

Yes, up to 4%.

[94cc0rd]

I'm gonna read up on investopedia.com

thanks

[stinky_180]

investopedia is a really great source.

i'de recommend checking out this thread:
http://zilvia.net/f/off-topic-chat/186475-stock-trading-thread.html?highlight=stock