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Let’s say you worked at Enron and did this. You would lose your job and the value of your shares on the same day. There are non zero costs to job switching, esp
by alasdair_ 8y ago
Let’s say you worked at Enron and did this. You would lose your job and the value of your shares on the same day. There are non zero costs to job switching, especially if there is a huge spike in people suddenly on the job market at the same time, in the same area, with the same skillset and the same employer with a bad reputation.
The only time it really makes sense not to sell an RSU instantly is if there is some extra tax consideration that can be avoided by selling slightly later or some similar benefit.
- notyourwork 8y agoLet's say you worked at Amazon and did this. You would continue to have a job and your equity value would grow substantially. There are worst and best cases, most fall somewhere in the middle. Your anecdote doesn't really change what I said because my point is some are willing to own more risk than others.
- alasdair_ 8y agoRisk is fine but there is no added reward for taking on extra risk that can be diversified away. In theory anyway - if you know material things the markets do not, this obviously changes.