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After reading 2137 websites, we found 14 different results for "what is 409a valuation"

an assessment of the fair market value of company’s common stock

A 409A valuation is an assessment of the fair market value of company’s common stock.

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a formal report that documents the value of your company’s common stock for the purpose of granting stock options

A 409A valuation is a formal report that documents the value of your company’s common stock for the purpose of granting stock options.

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An independent third party’s evaluation of the fair market valuer or the FMV of the equity shares of a private corporation

An independent third party’s evaluation of the fair market valuer or the FMV of the equity shares of a private corporation is known as a 409a valuation.

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a method of calculating fair market value ( FMV

In other words, the 409A valuation is a method of calculating fair market value (FMV) according to the regulations under the Internal Revenue Code (IRC).

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by law

A 409A valuation is required by law in order to issue stock options, and a 409A violation—for example, issuing options priced lower than your company’s FMV—comes with severe penalties for employees, even if their options have expired.

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a formal report that sets the current value of your company's common stock and the strike price to exercise an option to purchase that stock

A 409A Valuation is a formal report that sets the current value of your company's common stock and the strike price to exercise an option to purchase that stock.

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This valuation report from a third party firm

This valuation report from a third party firm is called a 409a valuation.

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in order to issue stock options

A 409A valuation is required by law in order to issue stock options, and a 409A violation—for example, issuing options priced lower than your company’s FMV—comes with severe penalties for employees, even if their options have expired.

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by third-parties

The valuation change was not triggered by a new funding round, but instead a new 409A price change; 409A valuations are set by third parties, which means that they are not tied to what a venture backer or other investor thinks.

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an independent appraisal process used to establish the strike price for newly granted stock options

A 409A valuation is an independent appraisal process used to establish the strike price for newly granted stock options.

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a formal valuation conducted by an independent third party to set the strike price for stock options issued to employees and other service providers

A 409A valuation is a formal valuation conducted by an independent third party to set the strike price for stock options issued to employees and other service providers.

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an appraisal done for tax purposes and done annually or upon a new round of financing

The 409A valuation is an appraisal done for tax purposes and done annually or upon a new round of financing.

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the process that answers the question “how much is this company worth

A 409A valuation is the process that answers the question “how much is this company worth?”

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an independent appraisal completed by a company

Current 409A price: A 409A valuation is an independent appraisal completed by a company and filed with the Internal Revenue Code (IRC).

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