Firms usually have diversified holdings and will use the event like this to write-down losses and optimise taxation for the next year. Where this is a problem

Firms usually have diversified holdings and will use the event like this to write-down losses and optimise taxation for the next year. Where this is a problem is for people with undiversified holdings, such as early employees exercising stock options. Under current system, they are on the hook for the tax bill, but if the stock crashes next year, they’d lose out and likely not having any offsetting gain where the loss could be a shield. Unlike the said firms.