Tag Archives | concentrated equity

Dan Zajac, philadelphia financial advisor

Managing Concentrated Equity in Company Stock and Stock Options

Concentrated equity, also known as owning a large position in one company stock, can exist in many forms. One form of concentrated equity may be the result of working for an employer who has issued stock ownership via restricted stock and stock options. These types of stock ownership and stock rights allow an employee to […]

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Dan Zajac, philadelphia financial advisor

Using After-Tax Value to Evaluate Liquidation Priority of Concentrated Equity

Concentrated equity can be defined as owning a substantial position in one company’s stock.  For such concentrated positions, one risk for a single owner may be a lack of diversification*.  Or said another way, having too many eggs in one basket. However, concentration risk may not be a bad thing. In fact, concentration in one company stock […]

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cashless exercise concentrated equity

Strategically Liquidating Concentrated Stock from a Tax Perspective

One rule of thumb regarding the ownership of company stock suggests that 10-15% of your total net worth may be a suitable allocation.  10-15% allows an employee or shareholder to participate in the upside of the company should the stock appreciate and, perhaps more importantly, be somewhat insulated from the risk of total wealth destruction […]

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