As a founder, executive, or pre-IPO employee, you've likely accumulated a significant portion of your wealth in company stock. While this represents a tremendous opportunity, it also comes with substantial risks. Concentrated stock positions can leave you vulnerable to ...
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 ...
Diversification is a key element of any investment strategy. By putting your investment dollars in a variety of assets, you can limit the risk of significant losses, reduce volatility in your portfolio, and take advantage of a wider array of opportunities, potentially ...
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 ...
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 ...
When you acquire stock options from your pre-IPO employer, your liquidity is severely limited. The most common ways executives and employees are able to sell their private company shares is through IPO, SPAC acquisition, or direct listing on a public exchange. However, ...
As your company’s public offering date approaches, preparation is everything. To take full advantage of this rare financial opportunity, it’s critical to understand exactly what type of options and/or equity you have, the tax implications they carry, and when you’ll be ...