Rule 701 Math: The 15% of Shares Test

If you are administering a private company┬ástock option plan, you need to do what is referred to as “the┬áRule 701 math” before every grant of stock options or equity awards. What is “the Rule 701 math”? Rule 701 contains a set of mathematical limitations on how many shares of stock you can offer service providers … Continue reading Rule 701 Math: The 15% of Shares Test

Rule 701

What is Rule 701? And if you are a startup or emerging company, why do you need to know about it? Rule 701 is a federal securities law exemption for issuing equity to employees, contractors and advisors. You need a securities law exemption or registration statement in place to issue securities, and so finding and complying … Continue reading Rule 701