Should You Exercise Stock Options During a Pre-IPO Window?
Is exercising stock options right before a company goes public a good idea? Employees with pre-IPO incentive or non-qualified stock options often wonder if they
Category: Stock options
Insights from Kristin McKenna CFP®, a nationally recognized expert in employee stock options and equity compensation. Articles cover a range of topics about employer stock, such as exercising options, tax planning strategies, Section 1202, considerations during a lock-up, and what to do with the proceeds. The blog also discusses liquidity events such as IPOs, mergers, or acquisitions and what happens to stock if you’re laid off or leave the company. Key insights for founders and executives on strategic stock option planning and strategies to best manage sudden wealth.
How to Negotiate Equity in a Private Company or Startup
Working for a startup can pay off big financially, but a lot must go right along the way. If you are considering taking a job
Frozen IPO Market Reveals Dangers of Pre-IPO Exercising & Pre-Spending a Windfall
The Instacart IPO is on hold…again. What should employees with stock options do when their employer’s IPO stalls? In truth, best practices around an IPO
Developing an Exit Strategy for Stock Options in a Down Market
Stocks are down this year, pretty much across the board. Unfortunately, there are some companies that won’t survive the downturn. Even for the ones that
What a Down Round Means for Employees with Stock Options
Quite simply, a down round is when a company raises money at a lower valuation per share relative to earlier financing rounds. A simple example:
The Stock is Down, But You’re in a Post-IPO Lock-up
More companies entered the public markets in 2021 than any other year on record. From traditional IPOs or SPACs, and even direct listings, it was a banner
Qualified Small Business Stock Gain Exclusion (Section 1202)
If you invested in a startup or small business (founders, employee exercise of stock options, business owner), you need to know about qualified small business
When to Exercise Stock Options
When should you exercise stock options? With stock options, employees have the right (not obligation) to buy the shares (called exercising). Vesting is often the
Expecting a Windfall from Stock Options or Selling a Business? New Tax Proposals May Cost You.
Tax planning for a sudden liquidity event just got more complicated. If you’re expecting a big windfall from selling a business or employee stock options
What Does it Mean to Early Exercise Stock Options?
If you work for a private company or startup, you may be able to exercise your stock options early. With an early exercise, employees buy