sell

How to sell shares of stock in a private company | Equity 101 lesson 6

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I remember when my friend gave me a call and  he was like, “Nathania, I bought a house." And  

I remember thinking, “Whoa, like, those shares  that he had, that is what got him the house.”  

Up until this point, I didn’t really think much  of my shares. I knew that they were vesting, but  

they were just there. And then all of a sudden,  when he told me that, I realized that I could  

actually take my ownership and my shares and turn  it into something tangible and something real.

In this lesson, we’re going to talk  about selling your shares. What are  

the different ways you can sell? And what kind  of things do you need to consider when you do?

Selling your shares is a really personal decision.  It’s not as easy as just finding a buyer and  

selling your shares to them. There are a bunch of  different factors you need to consider. First of  

all: Can these shares even be sold or transferred?  Private company shares are usually subject to a  

lot of restrictions on sales and transfers. The  second question: Do you need the cash? If not,  

you might want to take a look and see: Is  the value of the shares increasing over time?  

In other words, is the stock going up?  Also: Will this be your only chance to sell?  

Do you know if you’ll have more chances to  sell in the future? Or the really big one:  

What are the tax implications associated  with selling? Because remember—selling your  

shares may implicate capital gains, which  means you’re likely to have a tax impact.

For a lot of employees, a big portion of  their net worth is tied up in these shares.  

So selling is a really important decision,  and it’s a really personal one, too.

There are a few different ways that  you can actually sell your shares.  

If you work for a public company, you can  usually sell shares right when you vest them—just  

sell them in the stock market.  Another way of saying this is: