Friday, August 2, 2013

What happens to my stock options after I leave a company? and Stock Exchange

What happens to my stock options after I leave a company?



If I had stock options and left a company and that company got bought. I had already excercised my grant, but did not "excersie" my options (sell the stock). Does it get converted into the stock of the other company? Or do I lose the ability to sell the stock after a certain date and basically lose it all once the other company has completed the sale of stock?


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Answer by Think F
Your employer may require you to sell your shares when you leave the plan. You can then roll the proceeds into an IRA or to your new employer's plan. Or, if your old plan allows, you can roll your shares from the plan directly into a rollover IRA established through a broker.

Check with your former employer about the rules governing the buying and selling of company stock, as well as the tax consequences. It may be to your advantage to take your distribution in stock rather than cash.


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Image by Travel Aficionado
Trading floor of Frankfurt's stock exchange lighted during Frankfurt's biannual "Luminale" light festival.



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