Can someone explain company stock and vesting to me please?

[Findumdum1]

I recently changed career direction and have been working for a US startup, having previously worked for big UK corporates and have never had stock or share options. I am about to leave this company after a couple of years and start work at another US startup. The first one is planning to IPO next year and issued all employees stock, some of which has vested before I leave. The new company also gives me some stock and is also still pre-IPO. I'm not sure what it all actually means or what to do with the first partially vested lot. I'm not under any illusions that either are worth any real money but I'd like to do whatever is best with it to maximise whatever they might be eventually worth.

All I know is that company 1 has granted me 40000 options, 10000 of which have already vested, I havent excercised any and I could excercise today all 40000 of them. The exercise price is $0.01. What does this mean, should I just leave them as they are or should I do something with them pre or post-IPO?

Bump for any knowledgeable people

So it's basically 400 dollars' worth? I'd probably take a punt and keep them for a bit to see what happens as it isn't a massive amount anyway.

Generally, if you feel the company is going up in the world and developing, you should keep the shares as they might be worth a few grand in a few years. If the company goes bust, they'll be worth 0.

Ie Id exercise the option as there could be money to be made.

thanks for replying. Yeah thats what I thought, spend the $400 and see what happens. They aren't a massively impressive company imo (hence why im leaving) but they do seem to survive. Thanks!