Strategies For Selling Stock Post-IPO
From our Strategies For Selling Stock Post-IPO blog post.
The simulator above looks at five typical stock performance patterns: increasing, decreasing, peak-dominated, u-shaped and oscillating. We picked 10 companies, two that fit each pattern, to offer real-life examples.
Then we applied four different stock-sale strategies to the stock performance of each company, comparing the results to what would have happened if an employee sold none of her shares. Here are the strategies:
- Sell 10% each quarter for 10 quarters
- Sell 10% of the remaining shares each quarter
- Sell 50% up front and 10% per quarter for five quarters
- Sell all shares immediately post-lockup