Re:Companies and Billionaires
by prostoalex on Tuesday September 20, 2016 @01:50AM
(#12537380)
Three possible strategies:
1) Sell immediately and diversify.
2) Sell a smallish portion of holdings at a market price periodically.
3) Never sell anything, borrow against the portfolio to finance personal needs.
Strategy (1) is suitable for heirs and retired executives.
Markets really-really like it when active executives stick to (3), though. Because it's not the most rational financial decision and due to AMT tax bill incurred on new stock grants to such active executive, most people at that level stick to (2), which can be traced via tools such as Yahoo! Finance.
(2) also has a benefit of reasonable diversification and obfuscation in regards to internal signals, i.e. traders reading the insider filings for any signs of unusually high buy or sell orders.
1) Sell immediately and diversify.
2) Sell a smallish portion of holdings at a market price periodically.
3) Never sell anything, borrow against the portfolio to finance personal needs.
Strategy (1) is suitable for heirs and retired executives.
Markets really-really like it when active executives stick to (3), though. Because it's not the most rational financial decision and due to AMT tax bill incurred on new stock grants to such active executive, most people at that level stick to (2), which can be traced via tools such as Yahoo! Finance.
(2) also has a benefit of reasonable diversification and obfuscation in regards to internal signals, i.e. traders reading the insider filings for any signs of unusually high buy or sell orders.