Glossary Archive - Zajac Group

Open window

by Daniel Zajac, CFP®, EA | July 12, 2023 | O

Open windows are periods when executives, employees, and other inside shareholders are free to sell their company stock (subject to the broader rules restricting insider trading). In other words, such...

Lockup period

by Daniel Zajac, CFP®, EA | July 12, 2023 | L

A period of time after a company completes its initial public offering (IPO), when executives, employees and other inside shareholders are prohibited from selling their company stock. Specific terms depend...

Insider Trading

by Daniel Zajac, CFP®, EA | July 12, 2023 | I

The illegal act of buying or selling a company’s stock based on confidential information you possess. For example, if you’re aware your company is about to announce a major setback...

Blackout periods

by Daniel Zajac, CFP®, EA | July 12, 2023 | B

Also referred to as blackout windows, these are periods of time when executives, employees and other inside shareholders are prohibited from selling their company stock. Blackout periods usually precede and...

10b(5)-1 Plan

by Daniel Zajac, CFP®, EA | July 12, 2023 | 1

These plans allow an executive or employee to enter a pre-determined program for the future sale of company stock at times when trading may otherwise be prohibited, such as during...

Withholding

by Daniel Zajac, CFP®, EA | September 2, 2022 | W

When Restricted Stock Units vest and/or you exercise your Non Qualified stock options, your employer is likely to withhold value/shares from the transaction to cover your estimated taxes due. This...

Vesting

by Daniel Zajac, CFP®, EA | September 2, 2022 | V

When granted equity compensation, there’s usually a period of time that must elapse prior to the value becoming yours (for restricted stock units) or you having the right to exercise...

Unrealized/realized

by Daniel Zajac, CFP®, EA | September 2, 2022 | U

See realized/unrealized.

Tax-sheltered accounts

by Daniel Zajac, CFP®, EA | September 2, 2022 | T

There are myriad accounts whose holdings receive tax-favorable treatment, such as your company’s 401(k) plan, traditional and Roth IRAs, 529 college savings accounts, health savings accounts, and others. Each type...

Taxable accounts

by Daniel Zajac, CFP®, EA | September 2, 2022 | T

Unless an account specifically qualifies for tax-favorable treatment, it’s a taxable account. For example, when you sell shares of a security held in a “regular” bank or brokerage investment account,...

Strike price

by Daniel Zajac, CFP®, EA | September 2, 2022 | S

See exercise price.

Stock origin

by Daniel Zajac, CFP®, EA | September 2, 2022 | S

You may have acquired different company stock lots by exercising different types of stock options—such as restricted stock units, incentive stock options, and/or non-qualified stock options. Since each may impact...