Forge works to help you sell your private company shares to realize your financial goals. Today.
Having closed over 16,000 transactions, Forge’s Private Market Specialists are licensed brokers with years of experience helping employee shareholders turn their equity into liquid assets.
Forge helps shareholders understand the market value of their shares and identify possible buyers from our network of 125,000 accredited investors and institutions.
Register with Forge for free to explore selling your shares.
Fill in a short form to indicate your interest to sell, target price and number of shares.
Forge reaches out to its network of 125,000 accredited investors and institutions to source potential buyers.
If there’s a match, a Forge Market Specialist will work with you to complete your transaction.
They know what they are doing, have a tremendous set-up and are a great team of professionals.
Based on the type of stock option you’ve been granted (Non-Qualified Stock Options vs. Incentive Stock Options), you may owe taxes at exercise and sale or only at sale. Talk to a tax advisor about your total tax liability to avoid any unexpected surprises at the end of the year.
Income tax is paid on earnings from employment, interest, dividends, royalties, or self-employment, whether it’s in the form of services, money, or property. Capital gains tax is paid on income that derives from the sale or exchange of an asset, such as a stock or property that’s categorized as a capital asset.1
The 83(b) election is a provision under the Internal Revenue Code (IRC) that gives an employee, or startup founder, the option to pay taxes on the total fair market value of restricted stock at the time of granting. The 83(b) election applies to equity that is subject to vesting and alerts the Internal Revenue Service (IRS) to tax the elector for the ownership at the time of granting, rather than at the time of stock vesting.1
Private companies that want to issue shares to their workers must be appraised because, unlike public companies, there are no share prices available to view at any time. This is called a 409a valuation – an appraisal of a private company’s stock in preparation for issuing shares to workers. 409a valuations should be made every 12 months or at every round of funding.1
1. The Balance
Stock options allow you to purchase shares in your company’s stocks at a predetermined price (i.e. strike price) for a limited number of years. Employers encourage employees to stay longer because there’s typically a vesting period before the options become exercisable. This means that you have to be employed for a certain amount of time before you can actually exercise (or buy) the stock you were granted.
Restricted stock units (RSUs) are the most common type of equity compensation and are typically offered after a private company goes public or reaches a more stable valuation. Like stock options, RSUs vest over time, but unlike stock options, you don’t have to buy them. As soon as they vest, they are no longer restricted and are treated exactly the same as if you had bought your company’s shares in the open market.1
Represent shares of ownership in individual companies; a measurement of equity (e.g. own 5% of the company)
Stock of a company that is not fully transferable until certain conditions have been met; when conditions are met, the stock is no longer restricted and becomes transferable to the person holding the award
Contracts with other investors that let you bet on which direction you think a stock price is headed
Period of time over which a stock award is earned
These are earned options
These are unearned options
This is the very first point you earn the first of your options
Purchasing the options
Price at which an employee is eligible to purchase shares once options are vested
The window of time in which employees are not allowed to redeem or sell shares
The price per share of the stock at a given time
Corporate benefit that gives an employee the right to buy shares of company stock at a discounted price with the added benefit of possible tax breaks on the profit
Employee compensation offered by employers wherein the option holder pays ordinary income tax on the profit made when they exercise the shares
Right to purchase a company's stock at a specific price and at a specific date
Occurs when an employer pays a part or all of the compensation of an employee in the form of corporate stock