Q: Is it legal to purchase stock options from an employee at a private company?
I.e. Could I legally cover the taxes on an employee's vest, to "purchase" the shares that would normally be sold to cover the taxes associated with the vested stock amount? If I formed a private agreement with that employee to earn the return on those shares, minus some percentage, would that be legal?
A: This seems like a strange way to address the issue. Without speaking to your specific situation, a loan, to be repaid [secured or unsecured], would be a way one could cover costs. You need to speak with a local attorney regarding your specific situation. [I litigate cases. Anything posted here must not be construed as legal advice, nor as grounds for forming an attorney-client relationship. You should seek an attorney for formal legal advice and representation.]
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