5 Steps to Managing Concentrated Equity in Company Stock and Stock Options

You can develop concentrated equity positions in your investment portfolio when you own or control a single stock that makes up a significant part of your overall allocation. While there are many reasons this can happen, one common way people find themselves with a concentrated position is when they receive equity compensation. Employee stock options, restricted stock units, or other company equity that you may receive create the opportunity to participate in the growth of...

The decision to exercise your employee stock options can be a difficult one, regardless of whether you have incentive stock options or non-qualified stock options. You have to consider potential tax implications, whether or not you have the necessary cash flow to execute a chosen strategy, and of course, deal with the fear of making a “wrong” decision. Although the tax situations with employee stock options may get complex, the thing that may trip most...

Employee stock options may be issued as part of an employee compensation package. Companies may offer this type of equity compensation as a way to reward key employees and retain top talent. If the company does well, and the stock price increases, the employee can benefit because their employee stock options are worth more.  Employees with more value in their employee stock options may also help an employer. This is because the value of the...