A concentrated stock position checklist
Holding a large share of your net worth in one company, often your employer, means your finances depend on one stock. This checklist helps you understand the position. It does not suggest whether to sell or hold; that depends on your full situation.
Measure it
Add up vested shares, unvested grants and options in the money, and compare to your total net worth. Remember that your salary and future grants also depend on the same company.
Know the tax picture
List each lot with its cost basis and holding period. Lots with different bases can have very different tax outcomes. Many people find this is the piece they know least about.
Know your constraints
Trading windows, blackout periods, holding requirements and any pre-arranged trading plans limit when shares can be sold. Knowing these dates matters before any discussion of options.
What to gather
- Employer stock as a share of net worth
- Cost basis and holding period by lot
- Trading windows and restrictions
- Cash needs over the next few years
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Frequently asked questions
Is there a standard threshold for 'concentrated'?
There is no single rule. People often use rough guides such as one holding being a large double-digit share of investable assets, but the relevant level depends on the person.
Is this equity compensation guide advice?
No. Sam's List writes these guides for education. They describe common questions and processes, not advice for your specific situation.
Sam's List is a directory. Listing or paid status does not imply endorsement or ranking.