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by SilasX 2069 days ago
That doesn't feel much different from the (common, highly tax-favored) early exercise of stock options in a startup.

If you're becoming a part-owner, of course it makes sense you have to buy shares, my only confusion is how they determine the relationship between the value of those shares and what you have to pay for them.

1 comments

They know how many shares in the partnership they have, and the profits they earned and have no other shareholders, the remaining profit gets divided up among the partners.
What is that replying to?