

Ask HN: What is "warrant allocation"? - newoffer

I received a job offer from a startup, and among others it mentions:<p><i>The warrant allocation is in line with salary. If you joined at this stage and we have an exit in the $X range you could expect around N years salary to be paid out.</i><p>Can someone explain what this means?
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patio11
A warrant is very similar to an option: the future right to buy X shares of
stock at a (normally nominal, in this case) fixed price. Your allocation is
how many warrants you get. How much money they are eventually worth is very
dependent on (biggest risk factor) whether you exit, at what price you exit,
how many warrants you own relative to the total number of shares outstanding
at exit, how much dilution has happened, and whether the money guys decide to
screw you at or before the exit.

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newoffer
Ah thanks, haven't heard of warrants before and initial googling didn't help.
Found it now: [http://www.investopedia.com/ask/answers/08/stock-option-
warr...](http://www.investopedia.com/ask/answers/08/stock-option-warrant.asp)

