Hi everyone,
I’m looking for some advice because I’m honestly almost completely illiterate when it comes to stocks and equity, and I want to understand what I’m getting into.
I recently started working with a company where part of my compensation may come in shares based on hours worked. For example, after working a certain number of hours (let’s say around 80 hours), I may receive company shares.
The employer mentioned that I’m free to sell these shares whenever I want through platforms like Nasdaq Private Market or EquityZen.
My confusion is mainly about how realistic it is to actually convert those shares into cash.
From what I understand so far:
On public markets there are usually buyers available.
But for private company shares, it seems like you still need someone willing to buy them from you.
So my questions are:
How easy or difficult is it actually to find buyers on platforms like Nasdaq Private Market or EquityZen?
Is it common to wait a long time before someone buys your shares?
If I want to sell immediately, is that usually possible or not?
What happens if no one wants to buy the shares?
Do companies sometimes buy back shares from employees or contractors, or is that rare?
Again, I’m very new to this and trying to understand the risks before relying on equity as compensation.
Any insight from people who have dealt with startup/private market shares would be really helpful.
Thanks in advance.