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Planning for when your shares become tradeable after an IPO
Applies to:
Unvested RSUs are typically forfeited. Vested RSUs are yours to keep.
You usually have 90 days to exercise after leaving. ISOs may convert to NSOs.
You usually have 90 days to exercise vested options after leaving.
Unvested shares may be subject to company repurchase rights.
After an IPO, company insiders and employees typically cannot sell their shares for a lockup period (usually 180 days). Here's what you need to know as lockup expiration approaches.
Purpose: Prevents flooding the market with shares immediately after IPO
Duration: Typically 180 days, but varies by company
Who's Affected: Employees, executives, and early investors
When lockups expire, increased selling pressure often causes stock price volatility. Don't panic if prices drop - this is common.
RSUs that vested: Already taxed at vesting. Sale triggers capital gains.
Stock options exercised: Sale triggers capital gains from exercise price.
ISOs: Holding period matters for qualifying disposition status.
Going through a major life change? Get personalized help with your equity.
Divorce can significantly complicate your equity compensation. Learn how stock options, RSUs, and other equity are typically divided, valued, and handled during divorce proceedings.
RetirementRetirement triggers important decisions about your stock options and equity compensation. Learn about extended exercise windows, tax planning, and how retirement differs from regular departure.
LayoffBeing laid off creates urgent decisions about your equity compensation. Learn about accelerated vesting, exercise windows, and financial considerations when your employment ends involuntarily.
This content is for educational purposes only and does not constitute financial advice. The information provided is general in nature and may not appl...
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