Is your net worth too carefully tied to your company’s success?

A look at the risks of concentration, the benefits of diversity and how to take control. In the following section, I reveal the truths of the concentrated stock”get abundant “myths that live in the minds of lots of newbie concentrated stock owners, and I show why it is prudent to consider higher diversification. Even if the concentrated stock you own will be another AAPL/AMZN, both stocks have actually experienced decreases of 90%+ at some point throughout their lifetimes. Think about your other sources of possible exposure such as limited stock, RSUs, options, worker stock purchase programs, 401k, other equity compensation plans, as well as your future and current income stream connected to the company’s success. A great (safe) company sometimes can have a precariously misestimated stock price, and dreadful companies in some cases have actually terrifically underestimated stock prices. Another way this manifests is when a creator has less experience with stock market investing and has actually just owned their business stock….

How to protect your equity if you’ve been furloughed or laid off

Those who have a mutual understanding of equity may be positioned for a huge payday down the line.
Compared to conventional layoff circumstances, companies in the COVID-19 age are offering generous extensions and sped up vesting on their alternatives, which is unquestionably excellent news for workers with equity. That indicates that if you leave the business, you will have to exercise your options within 90 days or they go back to the company. Both options do not require the business to pay money at the minute, so there are few reasons a business ought to deny this request in this environment. If your business does offer you more equity, make sure you ask whether the 409A(or fair market worth) of the business is being upgraded. With modified projections given the COVID-19 situation, it may be possible for your company to provide your stock at a lower strike price if the company revalues its 409A….

Don’t get a PPP loan unless your association concerns are fixed

Don’t get a PPP loan unless your association concerns are fixed

Since the regards to the PPP are so engaging, it simply needs to be looked at as a funding source. I believe that’s unfortunate, because the possible benefits of a PPP loan are compelling. Since the terms of the PPP are so compelling– a loan that becomes a tax-free grant if invested on payroll, rent and utilities (in essence, for earlier stage start-ups, your burn)– it simply has to be looked at as a financing source. Let’s step back for a second and address another typical misperception: it’s important to comprehend that an association analysis is distinct from application disclosure requirements driven by the PPP’s 20% owner limit….

Stocks dive on Dow’s worst day since 1987, tech crashes and Bitcoin is no haven

Stocks dive on Dow’s worst day since 1987, tech crashes and Bitcoin is no haven

Well, that was terrible. During the day’s wild trading session, the Dow Jones Industrial Average (DJIA) dropped by just under 10% in what was the largest single-day percentage decline since the stock market crash in 1987 (when markets were sufficiently scarred to institute failsafe measures for the future, to prevent similar, shocking declines). Investors shrugged […] …

Stocks fall again, pushing deeper into bear territory as SaaS reaches 1-year lows

Stocks fall again, pushing deeper into bear territory as SaaS reaches 1-year lows

American-listed shares are off sharply this morning, falling after a steep selloff yesterday was not staunched by a presidential address. The declines echo what happened to Asian-listed stocks earlier today. All major American indices are now in bear-market territory, having shed the requisite 20% from recent highs. Today’s carnage is simply bleak. As we write […] …