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After reading 1974 websites, we found 12 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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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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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 the IRS
The 409A valuation is required by the IRS for private companies that issue stock options to their employees to ensure these options are not issued at a discount.
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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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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 appraisal done if your company offers equity
A 409A valuation is an appraisal done if your company offers equity.
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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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In other words as the strike price of stock options granted to employees
In other words, the 409A valuation is used as the strike price of stock options granted to employees, setting a base upon which profits are treated as capital gains by the IRS.
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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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