21–23 of 23 posts
are you allowed to short the stock during the period when you are not allowed to sell the RSU’s? In other words, is it possible to create a liability (the short position) that exactly offsets your asset (the RSU’s that are ‘delivered’ but that you can’t sell)?
You have to read to paragraph #17 before you get the information the story is really about. Uber delivered shares to its employees on the day of its IPO in May 2019, meaning employees would be taxed at the price of $45 a share. But the employees were restricted from selling their shares for six months, by which point the price had fallen to around $27 a share. This definitely sucks for the employees. But it isn't rea…
Why is that stupid? I own the stock on day X (and ignoring the lock in period), it’s part if my compensation that I could sell and by any other stock.
He means that if I offered you stock with a 6 month lockup, or a stock with no lockup, you would prefer the second, and value it much higher.
Earlier quoted context omitted.
> You were taxed when they vested You were taxed the minimum amount (37%) when they vested, but likely need to pay a lot more than that yourself.
Where did 37% come from? It would usually be around 22%-24% and whatever your state tax rate is.
That's also the tax rate, not the withholding rate.
I have no idea what they meant by "but likely need to pay a lot more than that yourself," unless that was a reference to state income tax. 37% is the highest bracket. It's higher than AMT. I'm not sure under what circumstances you'd owe more than 37%.