How stock options method enables employees to become shareholders… - Vidyadip

Question

How stock options method enables employees to become shareholders and share the profits?

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Answer

Venture capital finance has the following features:

It is basically equity finance in relatively new companies.
It is long-term investment in growthber oriented small or medium firms.
Venture capitalists not only provide capital but also business skills to investee firms.
It involves high risk-return spectrum.
It is a subset of private equity.
The venture capital institutions have a continuous involvement in the business after making the investment.
Such institutions disinvest the holdings either to the promoters or in the market.

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