Whether you inherited a large holding, exercised options to buy your company's stock, sold a private business, hold restricted stock, or have benefited from stock splits over the years, having a large position in a single stock carries unique challenges. Even if the stock has done well, you may want more diversification, or perhaps you have new financial goals that require a shift in strategy.
Moreover, when a single stock dominates your portfolio, selling the stock may be complicated by more than just the associated tax consequences. There also may be legal constraints on your ability to sell, contractual obligations such as trading windows and stock ownership requirements, SEC restrictions, public perception, or practical considerations, such as the possibility that a large sale could impact the trading price of the specific stock. And, because emotions become involved, it is easy for one to worry about missing possible future appreciation or to develop a loyalty with a particular company. The choices available to you will depend on your circumstances and tax considerations.
Pradel Financial Group has developed an expertise working with people who have high concentrations of stock and, through years of experience, we have developed a detailed, strategic process that addresses this unique need.