10b5-1 Trading Plans: Sales Strategies for Insiders
Rule 10b5-1 allows insiders to create pre-arranged trading plans as a way to remain compliant when managing their stock compensation. When structured properly, a 10b5-1
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.
Rule 10b5-1 allows insiders to create pre-arranged trading plans as a way to remain compliant when managing their stock compensation. When structured properly, a 10b5-1
Accepting a tender offer means the company buys back some of your stock or options. While it won’t always make sense to accept, any opportunity
Key Summary: An 83(b) election lets founders and early employees buy unvested stock and recognize the taxable gain now (if any), instead of when the
What happens to employee stock options or equity compensation if you leave the company? Before giving notice, understand how vested and unvested stock options and
Early Exercisable Stock Options, Key Summary: Exercising stock options means buying shares. Early exercising stock options means buying the stock before it vests. When should
When’s the best time to exercise your stock options? With stock options, employees have the right (not obligation) to buy the shares. When you exercise
When a company buys another company, what can happen to your stock depends on several factors, including if you own stock outright or vested/unvested stock
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
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:
What happens to stock options if a company goes public without an IPO? A Direct Public Offering (DPO) or direct listing is a way for