OTCBB stock: broker/issuance/tax advice
April 27, 2006 8:08 PM Subscribe
I'm about to be eligible to exercise stock options on a stock traded on the Over The Counter Bulletin Board (OTC
Advice on getting my university to issue them to me, exercising (tax) and brokers (sale) please.
posted by lalochezia to work & money (23 answers total)
I was given options almost 3 years ago, but because I'm an 'inventor' in the company, I wasn't allowed to sell for 3 years. They are about to 'become liquid', and I'd like to exercise and sell immediately. Some advice please:
1) My organization (a major private university) is being tardy about instructing the company to issue me the stock. How can I firmly remind them to do so (in best legalese) as soon as they become liquid.
2) I'd need a broker that trades these stocks. I only want to make this one trade (sell) - advice on particular brokers?
3) Do I need to watch out for anything when I exercise them tax-wise -apart from the fact that as soon as they are issued, I'm liable for the tax on their net worth as capital gains, yes?
Other, more detailed question
The quantity of shares I'm being issued is about 90,000. The otcbb info says the 'volume' is 50k. I presume this means 50,000 shares traded in today's time period. There have been days when none are traded - the average seems at about 25,000 shares per day, and apart from a couple of days where 0.5-1m were traded, this occurs all the way back to the stocks inception.
How do I set up buyers for this quantity of shares (since I presume there is no 'exchange' for stock like this) - or is this stuff a broker will do? What kind of fees should I expect for this service?