Re:Silicon Valley's best kept secret: Founder liquidity
by erik_seaberg on Wednesday June 12, 2024 @10:26PM
(#40665335)
Some companies might make you hold for a few months until the next earnings report and trading window. After that it depends on your tolerance for risk and your attitude about the IRS.
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Re:Silicon Valley's best kept secret: Founder liquidity
by scruple on Thursday June 13, 2024 @02:59AM
(#40666779)
How does that work?
Re:Silicon Valley's best kept secret: Founder liquidity
by vonmoltke on Thursday June 13, 2024 @12:27PM
(#40671656)
Most (all?) public tech companies have policies that prohibit employees from trading the company's stock outside designated windows following a quarterly earnings release.
Re:Silicon Valley's best kept secret: Founder liquidity
by erik_seaberg on Thursday June 13, 2024 @12:35PM
(#40671748)
Earnings reports happen once a quarter between the company and the public. A couple of business days after that, employees (without material nonpublic info) may trade company shares for the next month or so. Maybe you can't sell April shares until mid-July, and then you have to decide whether to wait until next July to minimize tax on gain.
Sometimes you can elect to sell every released share in a quarter, or file a 10b5-1 plan with a schedule, but you have to do that during a trading window.