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Diversification is a cornerstone of sound investing. But what happens when a significant portion of your wealth is tied to a single stock or asset? This scenario introduces concentration risk—a critical concept for investors to understand and manage. Decoding ...
With the rise of online investment tools, investing has become easier, more convenient, and more accessible than ever before. Today, a range of investment apps are available, allowing users to make trades quickly and seamlessly from their smartphones. While expanding ...
When you work for a startup, IPO is an immensely exciting time. Executives and employees who have been receiving equity compensation may be looking forward to IPO day in anticipation of a big payout. Typically, however, company insiders aren’t allowed to sell shares at ...
Sharing your good fortune with others by donating to charities can generate a host of benefits. Not only can it spark that warm feeling inside of knowing that you’re making a difference; giving has also been shown to have the power to convey important health advantages ...
When you’re working for a startup and receiving equity compensation, hopes can run high at IPO time. Often, pre-IPO employees enjoy sizable boosts in their wealth after their companies go public. When things don’t go as planned, it can be hard to let go of the hope ...
A tender offer is an initiative by an individual, business, or corporate group to purchase a large quantity of non-public company stock. Initial investors and employees gain liquidity for their equities, making money available for other investments or expenses. By ...
Many companies provide stock options as equity compensation because they encourage employees to increase the value of their company through their work. It creates the potential for a tremendous win-win situation: employers benefit from an incentivized team that works ...
Incentive and non-qualified stock options (ISOs and NSOs) are two types of equity compensation that companies use to attract, incentivize, and retain top talent. Incentive stock options receive preferential tax treatment but come with limitations that don’t apply to ...
Grantor retained annuity trusts (GRATs) have become popular estate planning tools for wealthy families. Implemented properly, a GRAT can provide guaranteed income for the grantor and pass on wealth tax free to beneficiaries. In this article, we’ll look at how GRATs are ...
What are RSUs? Restricted stock units (RSUs) are a type of stock that companies often grant to employees as an incentive to remain with the company and contribute to its growth. Unlike stock options, which grant the right to purchase stock at a specified price, RSUs do ...