Alert: Equity Comp Survival Guide For Pandemic Times
(Apr. 23, 2020)
The COVID-19 pandemic has affected everyone, including employees with equity compensation.
- You may need to sell company stock for cash to meet living expenses.
- Your company's stock price has probably declined, leaving you wondering about your equity comp and financial planning.
- You may be considering the best use of your stimulus payment from the IRS.
- If you work for a small business that's seeking a forgivable loan from the Paycheck Protection Program, you need to understand the legal risks in the application and the use of the funds.
This alert presents recent articles from the myStockOptions editorial team on these and other timely topics. See also a full list of new and recently updated content at myStockOptions. Because Tax Season 2020 has been extended to July 15, it includes the fully updated tax-return content in our Tax Center.
7 Things To Know When You Sell Company Stock To Raise Cash
You may find yourself in a position where you suddenly need to come up with cash to meet living expenses or other urgent financial demands. One source of these funds can be proceeds from selling shares of your company's stock, whether acquired via the open market or equity compensation (e.g. stock options, RSUs, ESPPs). Before you sell your company shares, review this article's checklist of topics to understand on tax, company, brokerage firm, and SEC rules: 7 Things To Know When You Sell Company Stock To Raise Cash.
Insider Trading: How To Stay Out Of Trouble
If you do sell company stock quickly to raise cash, be careful. Depending on your access to confidential company information, trading company stock can actually get you into serious legal trouble, including criminal liability for insider trading. A new article at myStockOptions explains what you need to know: Insider Trading: How To Stay Out Of Trouble.
Market Volatility: A Survival Guide For Equity Comp
When stock markets become a rollercoaster and the economy is in a downturn, you need to hang in there and remember equity comp and company shares are best viewed as a long-term deal. Several articles at myStockOptions provide useful advice on coping with stock-price volatility, down markets, and job termination (whether layoffs or other types). These include:
- Stockbrokers' Secrets: Equity Compensation Strategies For Volatile Markets
- Stomach Volatility In Your Company's Stock Without Losing Your Mind
- Job Loss And Your Stock Grants (Parts 1 and 2)
- Preventing Irrational Decisions About Selling Company Stock Or Exercising Options
- Manage Your Expectations To Avoid The Option Blues
- Reframing Your Stock Option Exercise Strategy In Volatile Markets
- Equity Compensation Strategies For Down And Rising Markets
Donating Your Stimulus Check: 4 Key Tax Rules To Know
If you don't need the extra cash, one possible use of your stimulus payment from the IRS is to donate the money to a worthy cause. For this beneficence, you may get a tax deduction. Before you seek the deduction, learn the IRS rules that apply in an article at the Forbes.com blog of our editor-in-chief Bruce Brumberg. For guidance on the tax deduction for donations of stock instead of cash, see the related FAQ at myStockOptions.
How To Avoid Legal Problems With Your Paycheck Protection Program Loan
Potentially forgivable loans to small businesses are available via the Paycheck Protection Program (PPP). In an article at Forbes.com, we present advice from former federal prosecutors on avoiding legal problems with PPP loans. In a separate Forbes.com article, we share insights from small-business attorneys about how to meet the conditions that make the loan forgivable, and how to use PPP loan funds in a way that avoids abusing the loan program.
Learning Center Offers CE Credits
Keep up your continuing professional education! In our Learning Center, myStockOptions has six courses and exams offering CE credits for several professional designations:
- 30 continuing-education credits for Certified Equity Professionals (CEPs): 100% of the total requirement
- 15 continuing-education credits for Certified Financial Planners (CFPs): 50% of the total requirement
- 15 continuing-education credits for Certified Private Wealth Advisors (CPWAs) and Certified Investment Management Analysts (CIMAs): 37.5% of the total requirement
- Chartered Financial Analysts (CFAs) and Certified Public Accountants (CPAs) are encouraged to take our courses and exams and include them, if possible, when they self-document their continuing professional education
Each course of study features podcasts, articles, and FAQs from myStockOptions. They are woven into a dynamic, interactive learning tool that teaches the topics in a memorable way. The answer key for each exam also links to relevant content on the site for further reading and learning.
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