#Finance

Can someone explain splitting of stock options?

Assume you join a startup that gives you 1000 options with strike price Rs.10 and preferred share price Rs.100 vested over 4 years. If after the second year there is a stock split and each old share is split into 10 new shares, what will the new strike price be? I assume the new preferred share price will be Rs.10 and I will now have 10,000 options, but will the strike price also scale down to Rs.1 for my past two years of vested options?
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zombie · Flipkart
506 days
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