2 ms·
People are lazy. You can always sell your grant as you get it, they can’t make holding stock mandatory, but a lot of people (including me) just hold the stock i
by seanmcdirmid 2y ago
People are lazy. You can always sell your grant as you get it, they can’t make holding stock mandatory, but a lot of people (including me) just hold the stock in a really undiversified portfolio.
- Murky3515 2y agoSo they're too lazy to buy stock when they get paid, but not too lazy to sell stock when they get paid?
- seanmcdirmid 2y agoHuh? The opposite, they don’t sell the stock they are granted to buy other stock instead to diversify their portfolio.
- oneshtein 2y agoThis will tank price of shares.
- eru 2y agoHuh, why, how?
- HelloNurse 2y agoOf not traded shares that don't really have a price?
- eru 2y agoWell, there's still a bid and an ask quote on the market, even when no trading is happening?
- eru 2y ago> You can always sell your grant as you get it, they can’t make holding stock mandatory, [...] They can. It's easy in private companies to limit what an employee can do with their stock, and in public companies they can insert a clause in the contract to that effect just fine. Or just have very long vesting periods. (Of course, as a would-be employee I would take these restrictions into account when deciding where to work.)
- seanmcdirmid 2y agoYou either own the stock or you don’t. If you paid federal income taxes on it, they have to let you sell it as you get it if you want, otherwise it isn’t real income. They can restrict when you sell it afterwards, but only in the cause of avoiding insider trading, and you can set up a plan to sell it blindly if you’d like.
- eru 2y agoIt's not nearly as simple as that. Look up eg a 'poison pill' for an example where you don't "either own or stock or you don't". (See https://en.wikipedia.org/wiki/Shareholder_rights_plan https://en.wikipedia.org/wiki/Shareholder_rights_plan)