What to Expect When Your Company IPOs and How to Prepare for a Liquidity Event

Being part of an initial public offering, or IPO, is an exciting time. This is when a private company goes through the process of getting listed on a publicly-traded exchange. Where shareholders may have previously only been able to buy or sell the company’s equity in private deals (if allowed by the company), an IPO allows for company stock to be bought, sold, or traded...

Access to an employee stock purchase plan that offers a lookback provision and a discount is often a great benefit for employees. If you can afford to contribute, these two features may allow you to.

Many private companies offer equity compensation in the form of employee stock options. For employers, offering this benefit is one way to attract and retain talent. Equity compensation can create a shared interest in the company’s overall success. If the company does well and the stock price appreciates, employees who hold company shares can increase their own wealth by exercising and selling valuable stock. But when you work for a private company, employee stock options...