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My company was acquired almost a year ago. In the acquisition, most employees received RSU grants which vested on a 1 year cliff.

These RSUs are managed through Etrade. My options for tax purposes are "Withhold shares", "Sell to cover", "Cash Transfer" and "Same day sale".

My concern is this -- some back-of-the-envelope math says that, assuming most employees do a same-day-sale (there is no good tax reason not to), the total volume of shares being sold on the acquisition anniversary will be 1-2x the average daily trading volume of the stock.

Should I be concerned that the large number of shares being released on that day will drop the share price (at least temporarily) enough to hurt the price my grant will fetch? I don't know what kind of protections Etrade has against the market being too shallow to sell shares at a reasonable price.

I could do a "Cash Transfer" if absolutely necessary, but it would be difficult to get enough liquid cash transferred in time for this option.

  • what companies? – CQM Jun 5 '15 at 19:29
  • "assuming most employees do a same-day-sale" why is this valid? And even so, what percent of the float does this represent? – JoeTaxpayer Jun 5 '15 at 19:34
  • (1) the default option is same-day-sale (2) I don't have any exact numbers, but ballpark math says .1% - .2% – bpodgursky Jun 5 '15 at 20:00
  • I'd rather not specify companies if not necessary. – bpodgursky Jun 5 '15 at 20:01

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