Should I sell my stock in the company I work for which is about to go public?
October 28, 2011 12:05 PM Subscribe
My initial vesting date will be just a few days after the IPO. Should I sell all the shares that vest on the vesting date immediately? How do I maximize my future happiness in making this decision?
posted by nohat to Work & Money (17 answers total) 2 users marked this as a favorite
The company I work for is about to go public, and part of my compensation package is a grant of shares of stock (RSUs—"restricted stock units"). My first vesting date is going to be just a few days after the company goes public, so I won't be beholden to the lockup period.
Should I sell all the shares that vest on the vesting date immediately? What kinds of things do you have to think about to make that kind of decision? What is the rational decision calculus for something like this? On the one hand, if the stock goes into the toilet and stays there forever, I'll regret not selling sooner. On the other hand, if it goes up and up and up, I'll wish I held on to the stock. How do I maximize my happiness?