3min chapter

LEVELS – A Whole New Level cover image

#84 - Startup Equity 101: ISOs, NSOs, RSUs, Secondary Sales, & other things you should know | Henry Ward, Sam Corcos, & Zac Henderson

LEVELS – A Whole New Level

CHAPTER

Is There a Secondary Sal Process for Long Term Capital Gains?

In order to be eligible for, like, long term capital gains, you would actually need to hold the ie. So for, let's say, a year your vessing period pits, you'd have to exercise and then hold the underlying share for that additional year to beeligible for long term gains. The reason is, tha lontary capital gains treatment is supposed to reward people who take risks. And so what a lot of employers do if they can't exercise their stock is, you my one dollars fora price, ten dollars, example. They leed ten thousand dollars to exercise ten thousand shares. Soh they might do wit, sell a thousand shares to get ten thousand bucks

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