Mercer Advisors
Sharing Knowledge

Question

Should I sell my company stock after IPO?

Answer

Selling company stock after an IPO involves several key considerations:

  1. Lock-Up Period: Most IPOs include a lock-up period (typically 90–180 days) during which employees cannot sell their shares. Plan your strategy for when this restriction ends.
  2. Tax Implications: Understand how your stock is taxed. Gains from shares held for over a year may qualify for long-term capital gains rates, while shorter holding periods are taxed as ordinary income.
  3. Diversification: Avoid overexposure to your company’s stock. Selling some shares can help reduce risk and create a more balanced portfolio.
  4. Financial Goals: Align your selling strategy with personal goals, such as funding a major purchase, paying off debt, or reinvesting.
  5. Professional Guidance: Consult a financial advisor to navigate complex decisions, including tax strategies and portfolio adjustments.

Related FAQs

How do ESPPs work at tech companies?

What are RSUs and how are they taxed?

What is a SLAT (spousal lifetime access trust)?
Tech Professionals FAQs
Last Updated May 14, 2026
Previous Next

Further Learning

man meeting with a financial advisor in office, shaking hands
What Clients Ask Article

Questions to Ask When Choosing a Financial Advisor

Discover the essential questions to ask when choosing a financial advisor — covering fiduciary duty, compensation models, and team approach.

Investment Management Article

Financial Planning Is a Prerequisite to Successful Investing

At Mercer Advisors, financial planning often serves as the starting point for investing decisions. It is the foundation of our evidence-based investing principles.

Estate Planning Guide

The Family Guide to Estate Planning: Helping To Protect What You’ve Built Across Generations

Explore wills, trusts, beneficiary traps, POAs, estate tax changes, inherited IRAs, gifting, and family conversations in one comprehensive planning guide.

Investment Management Article

Portfolio Diversification: How To Build a More Resilient Investment Strategy

Learn how a coordinated strategy may help manage risk and support your long-term goals.

Back to Sharing Knowledge

About Mercer Advisors

We exist so you don’t have to worry about money. For more than 40 years, we’ve taken the sophisticated, time-tested approach that many ultra-high net worth individuals use to help manage their financial lives and made it accessible to more families.

Explore Our Solutions

Financial Planning
Estate Planning
Tax Planning & Preparation
Insurance Solutions
Investment Management
Trustee Services

Want to learn more about Mercer Advisors?

Let’s Talk