Restricted Stock Units (RSUs) Explained | DO THIS for Maximum Benefit!
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- Äas pĆidĂĄn 6. 07. 2024
- RSU are additional compensation given to employees in the form of company stock. What do you do with them? How are they taxed? Watch to find out.
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Itâs called ârestrictedâ because you donât actually own these stocks as soon as it is offered to you. There is a grant date when the shares are promised to you and a vesting date when you actually own the shares. There is also a vesting schedule that determines the length and frequency of vesting.
So do you hold or cash out your RSU? If you hold a sizable percentage of your own company stock in your portfolio, it is a good idea to diversify into something like an index fund. You donât want to put all your eggs into one basket as your salary is also dependent on the same company.
Restricted Stock Units have different tax implications at each stage of the vesting process. When they vest, you will immediately owe income taxes and then may have to pay additional taxes based on when you sell.
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đ TIMESTAMPS:
00:00 - Intro
01:08 - What are RSUs?
01:32 - Why is it "Restricted"?
01:53 - Vesting Schedule Explained
02:42 - How do Refreshers Work?
03:17 - Hold or Sell?
05:16 - The MOST IMPORTANT Question
05:38 - Tax Implications
DISCLAIMER:
The advice provided in this video is for informational/entertainment purposes only. The creators take no responsibility for any actions or decisions you may take based on the contents of the video. Please consult a professional for strategies related to your specific needs.
DISCLOSURE:
Some of the links in this description are promo links, meaning that I may receive a small commission when you sign up for these services.
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ABOUT US:
We want to share our stories and talk about lessons learned while first moving to America, planning our journey to financial literacy, and adopting best practices into our lives.
As internationals, it was difficult to find relevant resources to understand the aspects of life that were different in a new country. Some of us come from places that treat the path to success as a "competition" and as a result, we shy away from having open conversations about money.
This channel is a comfortable space to have those discussions and help each other out!
Music: www.bensound.com
#restrictedstockunits #rsu #rsutax
Legit the most helpful video i've seen. I'm JUST trying to adult and I got RSU's for the first time and I have never been more lost until I found this video. I love how you explain in a way that a teenager would understand. Thank you for simplifying finances!
Thanks so much Youjin. Cheers to adulting :)
I have been adulting for a long time and am confused by RSUs. The world keeps getting more and more confusing.
Another adulting person here with RSU in hand for the first time. Thank you for this insightful video.
so, did you sold all your RSU on your vesting date? just curious
Couple of things we wanted to add:
- If you leave the company before the vesting date, then you forfeit the remaining shares
- The video is about public company RSUs. If your company is private you generally have to wait for an IPO or acquisition before you can sell your RSUs.
đ TIMESTAMPS:
01:08 - What are RSUs?
01:32 - Why is it "Restricted"?
01:53 - Vesting Schedule
02:42 - RSU Refreshers
03:17 - What to do with RSUs?
05:16 - The Most Important Question
05:38 - Tax Implications
Hi @finance with Arjun,
Scenario: An unlisted US company offers RSU to its Indian Employee.
Question-1: If employment ceases to exist, would employee continue to hold already vested RSU ?
Question-2: How and where an employee liquidate RSUs. Remember employee is no more with organization and company is not yet listed?
If I leave copany after vesting date, will I retain or have to forfeit stock?
@@jimbim1623 usually you will get to keep them
What if my first vesting was on Oct 4th- 20 shares. And in May 15 of next year, 287 more shares are vested. So the 1 year is calculated from May 15 when I can sell the 287 or from Oct 4th?
Wow ... Amazing. Has to be the best video explaining all the points in detail with examples.
I liked how you explained the pros and cons of every option, keeping the decision part to the individual's discretion.
Way to go guys :) Keep it up.
Thanks so much, Srinidhi. Really appreciate your kind words :)
thank you so much for this! made all that mumbo jumbo RSU lingo crystal clear :D greatly appreciated
Glad it helped, Mindy :)
This is months and months worth of research! I wish you guys were around in 2018. Doing my own research took so long... I am glad others will have it easier now. :) I am going to recommend you to my friends who are just starting out with investing.
Thank you so much Ruturaj! We were in the same situation as you few years ago and are passing on everything we learned. So happy that you found our content useful enough to recommend to others :)
Thank you very much for this, it helped me understand more about those RSUs
Glad to help!
Thank you, this was really helpful to me to get a better understanding of what to do with my RSU on the vest date!
Thanks Sri. Go get that moolah!
As usual you guys are very thorough with your preparation and clear in presenting it as well...Keep it up
Thank you for recognizing the work that went in! We appreciate it :)
This is a great breakdown. Keep it up y'all! Tyvm!!
Thank you! Will do!
You guys are awesome! Well explained and easy to understand. Thank you. I'm your follower now :)
Thanks Alejandro, appreciate it :)
Excellent presentation. Nice skit to start with.
Thank you so much, glad you enjoyed it!
You people made it so simpleđđđ»thumps up for RSU and ESPP video
Thanks so much Balu, glad it was helpful :)
Such a well put together video!! Thanks guys.
You're welcome!
This is by far the best video on RSU.
Appreciate it Romon :)
Clearly explained! Thank you very much. Subscribed.. đ
Thanks!
Thank you! This is so so helpful!
Happy to help!
Good to understand, a lot of people donât fully understand RSUâs
Absolutely - thank you! :)
amazing stuff guys !
Thank you!
Thank you so much! This was extremely helpful.
đ
HD3!! Awesome. Great video btw. Thanks for sharing
Welcome!
Thanks for explaining. Many of the questions are answered here. Please explain about the SARs as well.
Thanks Saket, I will look into it
Masterpiece! Thank you so much!
Happy to help!
Great explanation!
Thanks so much Kelly :)
Super helpful. Thanks!
Glad it was useful :)
That was very helpful!
Happy to hear that Nikhil, thanks!
thanks! great explanation
You're welcome!
I was just thinking whether to sell my RSUs and found this video. CZcams algorithm knows even before I searched for it!!!
All hail the CZcams algorithm!
nice explanation
Excellent video
Well done!
Thanks Dan, appreciate it!
ХпаŃĐžĐ±ĐŸ ŃДбŃŃĐ°!
Everything is very understandable.
Thank you!
Nice video!!
Thanks!
Very helpful
You're welcome!
Good tips
Thanks FRU :)
Very good one :)
Thanks!
Excellent video...
Thank you!
This is perfect! I was dying for a channel which focuses on finances for internationals in the US. I follow a lot of the other youtubers but after every video I had to go and check if it was applicable to me.If yes, what are the caveats? Now I can just watch your videos. Also, are you guys planning to monetize your channel? Is it legal on H1-B? And, can you guys please do a video on options trading and what are the restrictions on that for people on F1 and H1-B?
Thank you so much Manish. Glad that you are liking our content :)
We are not monetized since we make videos to help people out and don't look at it as an income stream. Best would be to talk to an Immigration lawyer about this since there is no clear answer.
Options trading is allowed, just not as "day trading" which makes it seems like a job. We will definitely consider making a video about this in the near future. Thanks for the suggestion!
@@FinancewithArjun So as long as it's not monetized it's legal to upload CZcams videos? Thank you so much for the effort to help the community just out of goodwill. I definitely meant it as not day trading but I'll talk to a lawyer. Looking forward to your future uploads.
Hey Arjun , thank you .. this is excellent. Thanks for explaining in concise and clear way .
You're welcome Shikhar, glad it was helpful :)
Great Video! I just subscribed for your channel! What happens with my RSUs when the company goes public thorough an IPO ?
Thanks Umberto. That varies from company to company - usually there is a lockup period during which you can't sell. Once that date passes, you can sell your RSUs
Thanks for making this. There is a shortage of this type of content.
Thanks Shikhar. Completely agree, we started the channel for this exact reason :)
â@@FinancewithArjun đ
Another topic i was interested on but could not find good information on- Selling stocks as an F1 / H1B visa holder. Are they allowed to earn from stocks? what are the tax implications ? Difference b/w short term gains and long term gains, which one is better in which case. Just a suggestion for a future video topic đ. Keep up the great work !
Hi Shikhar, thanks for your question. :) Yes, you can earn capital gains by selling stocks on H1B/F1 and it is legal as long as you are not day trading. If you have held the stock for less than a year before selling, it is considered to be "short-term capital gains" and you end up paying higher in taxes compared to holding it for >1 year (long-term capital gains). Hope that answers your question!
@@FinancewithArjun thanks!
Nice video.
Thanks!
Long term and Short Term Capital gains for shares in MNC companies have different period of holding. Based on the example you showed (foreign company shares), the period is incorrect. Connect with your CA friend to update this portion. But Great Job to explain this complex topic!!
Thanks Aashish. This is for the US market as we are based out of the US. The holding period is different for India (I think 36 months).
if i had known i would have negotiated a cash bonus rather than acceptin rsus great video
đ
Good explanation, I stopped research RSU after watching your video!
That's great!
Thank you for this! If you decide to just cash out your RSU is the tax the same as if you were selling them?
Yes, that's right
Hey great video! Could you please also make one of the stock options give by employers?
Thanks Bhakti, that's a good idea. I'll add it to my list!
5:00, YES! I would do that exactly.
Me too!
@@FinancewithArjun đȘ! You are a smart cookie!
Thanks for that. Could you please explain about taxation in ESPP?
Hey Jagan, 05:38 onwards has the taxation part
thanks so much! So is it better to sell one year after they vest to pay long term capital gains instead of selling immediately when the RSU's vest? I was a little confused on this point?
I was making the argument that it's better to sell immediately and diversify into something like an index fund. We shouldn't let taxes alone guide our decisions
How cash gets transferred after selling RSUS? For ex: Fidelity broker holds RSUs but option to transfer to indian bank isn't visible
so do i need to pay double tax. lets say company vest 1lakh share i need to pay 30k as tax upfront . then if i sold those share in with in year i need to pay short term captial gain 15% ?
Yes, you have to pay taxes on vesting and after selling (if there is a gain, on the gains portion alone)
During the time of vesting of RSUs some shares are cut as tax and the remaining shares after tax deduction are given to me. I didn't sell them and still hold all the vested shares. When I left the organisation the vested shares are shown as income and I'm being taxed again. Can I claim returns?
It could be the taxation of the capital gains since the time of vest. Please consult a professional if you're unsure
So if you wait to sell until one year after the shares best, what do you pay taxes on? Is it ordinary income tax on the value at vesting, plus long term capital gains on any increase in price? In other words, if you donât sell your shares, do you still owe ordinary income tax on the value at vesting?
Yes you do, your assumptions are right
Helps a lot!!
What happens if employees quit after 2 year before vesting period i e before 4 th year?
If it's a public company, then you would get half the shares (since they would have vested already) and forfeit the rest
Hi! Do you pay taxes on the vest date even if you do not sell them?
Yes, companies generally hold on to a portion of the RSUs (and sell them) to offset taxes.
After few shares are cut as tax from the total vested shares, and I don't sell any of the vested shares, do I again have to pay income tax that year?
As taxes come into play at vesting, you might have to. It depends on the withholding that your company does. If you're unsure, best would be to consult a professional.
Let suppose i get 50 share of my company in december so when it totally vest will i get only 35 ,assuming 30% tax
That's correct (if they automatically withhold shares)
can you share a video if you have created one already...what is the price difference between the RSU price and the Stock Price? After the RSU has vested do I buy it? is it similar to employee purchasing stocks or options?
Please share how one RSU is equal to one stock?
They should be one and the same
What is the STCG and LTCG for RSUs of stocks which are listed outside India?
Hey Vivek, I'm more familiar with the US system but from what I see - STCG tax is at your regular income tax rate and LTCG (>24 months) is at 20% for Indians working at MNCs outside India.
Hi both, thank you for the video. I haver small startup and want to create a stock options compensation for a CEO. I have limited knowledge on this. I was thinking of issuing non qualified stock options. My intention is to buy back the shares after the CEO leaves the organization at the market value. The second option I thought was a RSA. What is your recommendation.
Don't think I have enough knowledge to assist here unfortunately. Would recommend consulting a professional
Hi I'm my company they withheld some stocks for taxes and again they are mentioning vested stocks in form 16 and it is again taxable while filing IT returns
In that case, you may have to manually modify it when filing taxes. This happens with some employers
Great and crisp video. Question, if i have say 100 vested rsus available with me now, and 100 rsus vesting only next year, if i leave my current employer, do i lose out on all 200? Or can i sell off the already vested 100 rsus?
Thanks Tawfeeq :) Generally, you will be allowed to sell already vested RSUs before you leave.
@@FinancewithArjun thanks for your reaponse. Would i be required to sell it off if i am leaving, or will i be able to hold on to that and sell later, even after i have left the said company?
That would depend on company policy but it's usually the former.
like you said in your video at the time of granting 25 shares tax will be deducted will the tax be deducted from basic salary or your shares will be reduced
Shares will be reduced usually
Can I transfer my RSU from one US brocker to an Indian brocker app? Or If I want to liquidate the vested RSU how can I do that from the US brocker?
You will have to check with that broker since they all have different stipulations
What about the price of the shares? If suppose i get 100 shares on the grant date for vesting period of 4 years. 25 shares vest immediately, what will be the price for next 25 which vest next year? Is it same as when it was granted or its based on the share price at that time?
Price is determined based on grant date. If the price is higher when the next 25 vest, you benefit from your RSU being worth more
RSU vested by company on July 2021. I have not sold it. My form16 is showing "Value of perquisites under section 17(2) (as per Form No. 12BA, wherever applicable)
" AMOUNT as 5 Lacs. Do we have any tax exemption for this amount to save tax. Please help
Hey Amit, unfortunately I'm not as familiar with the Indian tax system
@@FinancewithArjun Thanks for the prompt reply!đ
Plz reply.
RSU u get at time of campus placement would continue to 2nd year at company or they r just for 1st year. By continuing i mean would i get same amount of 'new' RSU 2nd year that i got during placement
I received a new grad offer and was wondering about the offer letter which states that I will receive $X amount worth of RSU's based on the 30-day trailing average closing price, which is granted a month before I start working. Does that mean I will receive more money when it vests if the stock price goes up when it's "restricted"? For example, if company gives me $2,500 worth RSU's at $2,500 a share (so 1 RSU), and after a year 100% of it vests and the company is trading at $3,000 a share and I sell, will I be able to keep the extra $500 (so sell for $3,000 total)? Or will I just be able to sell the 1 share for only the initial $2,500? Thank you for your help
You are right, you will be able to sell at $3000 (making $500 in the process). Its your vest date that's used to calculate the amount to be given to you.
@@FinancewithArjun Oh wow, that is great news! It makes me happy to know I will be able to pay off my student loans quicker and help my parents out with finances as a first gen student. Thank you for the clarification.
When shares get released and portions of it goes to taxes does the value of your shares gets added as annual income where you get taxed at higher bracket ?
Yes that's right
It's good to understand that the _full_ amount of vested shares is added to the annual income. Let's say you get 100 shares each worth $100 and let's say 25 is sold for taxes. Both the remaining 75 shares _and_ those sold for taxes are added to your income. So you get the full $10000 added to your taxable income. But of course, the 25 shares that were sold for tax, are also reported as tax paid.
Do i need to sell these RSU before i leave the organisation or i can keep it for future
If your stocks have vested, you typically get to keep them even after leaving (unless there is a claw back condition)
What's RSU units mean? I recently got an offer from Amazon and HR said I've been compensated 6 units of RSU's. So, what does this units means and what's the value of this?
RSU is basically stock with some conditions. You've been given 6 shares of Amazon stock that is worth 6*$2300 today
is there a reason not to sell the RSU and buy company independently to avoid trading window restrictions?
Are you talking about insider trading restrictions?
Nice video.
Could you also explain the taxation of these RSUs with an example?
Also, if you can, explain the taxation from Indian employee perspective, when he sells rsus that are listed in us, but he is working in India.
Hey, not too familiar with Indian taxation unfortunately
What about if you have 10 shares that already vested and you sale them in order to cash out? How long will it take for that stock to sell? And how long before I can transfer my cash into my account once sold?
If you set market orders it should complete right then. You should be able to transfer cash out immediately after that.
@@FinancewithArjun Doesn't it take two banking days though, for the trade to get settled and for the money to appear on the trade account?
Hi, when a company splits stock in 5:1 and my grant date is in 6 months. If I would be getting 20 shares before splits, will they grant 100 shares after the split or 20 only as this makes a huge difference in amount?
Yes, you are correct. They should ensure you get the same amount as before
@@FinancewithArjun Thank you đ
When the RSUs vest, around 30% of shares are deducted as tax in the US and there is tax refund on stock comp here in India in the salary slip, in this case is the tax on vested shares accounted or we need to still pay?
30% is just a standard withholding. You still need to pay the correct tax amount according to your tax bracket during tax filing
Thatâs tax on capital gains only right?
Is there indexation benefits while selling the rsu?
Not that I'm aware of (in the US atleast, not sure about India).
Shall I hold vested RSUS for long time say 10 yrs after I leave my company
Hey, thanks, What if they give you for example âŹ65k RSU vesting 4 years? how you calculate the money? thanks.hope not a stupid question :)
Hey, not a stupid question at all :) It would depend on the vesting schedule (i.e) how much you get each year. If it's an equal vest (25%) then you'd be getting 16.25k every year
@@FinancewithArjun It could be also something entirely different, as it depends entirely on how the stock value develops. By the time the four years is over, Omer might have received stocks worth $200k :-D
Can an employee in India hold RSUs of a private limited company in the US. The US company does not have an Indian subsidiary. It is employing through an Employer of Record situated in India.
This is a very specific case that I don't know the answer to
@@FinancewithArjun thanks for the honest response.
Is the strike price of the RSU fixed at the time of grant? What if the stock goes down between grant date and vest date ?
Say that I am given 100 RSUs at the time of joining. The price of the underlying stock is 80 $. They vest after one year at vest date. But, the price of stock has come down to 40$. Will I get 8000$ worth of stocks or only 4000$ ?
In your eg you would get $4000. But if the opposite happens (price goes up), you get to benefit from that too
@@FinancewithArjun thanks
Same for Indian Employees getting US RSU Stocks?
Not too sure about the Indian system unfortunately
Can I connect about my RSUs?
Instagram (@financewitharjun) would be the best way
I have one simple (maybe not too simple) question. When my RSUs vest, let's say 1000 RSU stocks, at the day of vesting the authorized broker (Fidelity) they automatically sell a portion of it, like 20-30% (200-300 stocks) in avg. Why is that? is that covering taxes and administrative costs? So, the rest is all mine, no more taxes implication/obligation?
Hey Marcio, good question. Yes, they hold on to some RSUs as a tax withholding. The rest should be yours but you have to account for it during tax season to ensure you don't get double taxed.
@@FinancewithArjun Hi dear Arjun. Thank you for the answer. I got double taxed and now IRS is asking me to pay a certain amount to them. Does your company deal with this type of case? Also, I found this explanation on Quora, can you check if it's accurate?
From Quora : A common misconception is being taxed twice on RSUs which is simply not true. Instead, a better way of understanding the taxation of RSUs is by breaking it down into 2 separate events:
The first tax event is on the RSU vesting date when the scheduled unvested shares amount becomes vested. Not to be confused with RSU grant date which is not taxed. The RSU vested amount is added to your W2 Form and taxed as ordinary income calculated from the stock price on the vesting date.
The second tax event is on the date you decide when to sell the RSUs that have vested from the first tax event. If the RSU vested shares are sold at a stock price greater than from the vesting date stock price, then you have capital gains. RSU capital gains are subject to be taxed at either Short-Term Capital Gains or Long-Term Capital Gains.
Yes, this is an accurate explanation
@@FinancewithArjun Can we connect privately to discuss that? For my tax basic knowledge mind it seems that your first response contradicts what I found in Quora.
I have holded stock 43 stocks in Amazon and it's increasing and increasing.should I hold it or should sell it.
Hey Prathamesh, I don't like to keep more than 10-15% of my portfolio in one stock. Amazon is great stock to hold long term but if it exceeds this threshold, I would look at diversifying into an index fund for eg. The concentration risk is too high otherwise.
Disclaimer: this is not investment advice and purely what I would do
@@FinancewithArjun risk hai to isqa haiđđđđ.i will buy a house or start a side bussiness.
How do I transfer money out from my sold RSUs on Schwab?
Not sure if Schwab has a different procedure but you can usually cash out to your bank
This topic diserves it's own video! Sending money from Schwab to your bank account is like trying to find our way out of a maze :-D
You both have explained very clearly, but can you have the same details video in Hindi.
Unfortunately my Hindi is not fluent enough for that đ
Thanks guys ! I have a question :
1) My company withheld 30% of my vested shares as a part of "sell to cover" tax scheme (US based company)
2) But at the same time, in my income tax computation statement they have added the entire market value of the (entire) shares as income
There by I'll have to pay tax on this as a regular income tax as per my slab rate
Is this okay? I feel like double_taxation. Please help clarify
Hey Sathwik, it is possible that you have been double taxed. You will need to modify this when you're filing your taxes: money.stackexchange.com/questions/76225/have-i-been-paying-double-taxes-on-my-rsus-for-3-years
I'm not in the US, but have been wondering the same thing in the payslip. It took me a loooong time to figure it out and it's perfectly logical. The value of all of the shares are taxable income, so both the cash part (sold for tax) and the stock part should be in the income section. But then again, the cash part (sold for tax) should be included in the taxes paid -section (if you have one) as well, since it's been used to pay taxes.
In your income tax computation statement, the 30% withheld amount would be added to "Tax with held" amount.
Anology would be, I was paid $5000 with $1000 withheld for tax, but in my income tax computation, entire $5000 was added as income.
@sathwik gs did you figure out why you were taxed 2 times. I am also facing same thing this year
@@Vishal-si9uy Yes, here's the process for taxation on RSU 'S
1) On vesting certain number of shares will be sold for tax purposes
2) At the same time your payslip for that month would mention the gain on total vested shares as income
3) But, the tax portion of that gain value will be mentioned as (-) negative number in deductions section
4) This implies that the tax is deducted only once , i.e. via tha shares sold
How do you know when your vest date is?
You should be seeing it in your internal RSU tracking tool
@@FinancewithArjun Thank you!
I have query on RSU tax calculation in india
Problem statement :
A person offered 375 RSU as a new job in one of MNC in india apart from base salary , on successfully completion of one year person can have 1/4th share , so if he/she competes all 4 years then he/she is the owner of all 375 units. as of now consider one unit rate =130 USD.
Queries:
1) How basic tax in India can be calculated on 1/4 th of RSU?
2) does company gives all 375/4 units on every year OR company can deduct some shares as a part of tax BEFORE giving to employees? what is the exact units per year to be considered for the calculations? (somewhere i read company can deduct 30% share , in this case actual 375 units will be decrease by some number, if yes please give idea how many?)
3) does above falls under long term capital gain if person sells after 1-2 year ?
4) what is the latest budget numbers on LTCG ?
It would be really good if I can get idea on RSU tax calculation of one year after may onward considering all above points .
Thanks waiting for the reply or new video
Hi Smit. Unfortunately I have little knowledge about the Indian system as I am based out of the US
@@FinancewithArjun oh okay thank you for the reply
Big caveat: software engineers at FAANG has essentially total job security: if Amazon goes out of business today a thousand other employers would drool over their layoffs.
So the diversification risk is negligible compared to simple firm investment risk
True that FAANG companies are safer than most but it is still risky to tie up large amounts of your net worth with just one company. RSUs over time can add up to a pretty large amount so you still probably want to sell some for diversification.
When can we sell rsu?
Anytime you want but for most people, I would recommend selling as soon as you get it and diversify.
If RSU 120 in HR letter, so i get 120 shares immediately?
There is usually a vesting period over a few years
@@FinancewithArjun , it mentioned 25% on every year, so out of 120 RSU, every year I will get 30 shares from company, so 4 years it will take for reach 120 rsu? I am right?
Yes
@@FinancewithArjun , thank you, after 1 year shall I sell the 30 shares or I want to wait upto 4 years to sell the shares of 120 RSU
I have amazon rsu units what should i do??
The same as I've outlined in the video :)
@@FinancewithArjun sell it,??
Depending on how confident you are in the company's future, how much AMZN stock you have already and if you think money can be put to better use elsewhere, you can decide how much to keep vs sell
@@FinancewithArjun i have 40 rsu units which is vesting this year but i am leaving company next year so my share will be taken back when I leave the company???
Completely ignores the fact that for some companies you cannot convert the RSU into actual shares. Its remains a virtual shares which gets sold at the market price of the equivalent share and the amount is paid out to the employee
Was not aware that some companies do this. Thanks for pointing it out.
Hate to be "that guy" but a small mistake in LTCG and STCG period. The LTCG kicks in after 2 years, not 1. If talking about Foreign Assets while calculating capital gains for employees in India.
Hey, this video was originally intended for folks in the US which has 1 year LTCG
1:08 is when actual content starts. thank me later
Scenario: An unlisted US company offers RSU to its Indian Employee.
Question-1: If employment ceases to exist, would employee continue to hold already vested RSU ?
Question-2: How and where an employee liquidate RSUs. Remember employee is no more with organization and company is not yet listed ?
1) That depends on the terms offered by the company. Some companies allow you to hold vested RSUs whereas others have a clawback where they take it back
2) There are places like equityzen where employees can sell RSUs even before listing but the demand/supply is much lower than the open market. Usually you have to wait for a buyout or IPO to liquidate
Faster guys. We don't have all day. đ
Aish is cute. Guessing... is Aish Pisces?
Adequate orientation or knowledge about the bitcoin trade or any other cryptocurrency is a key to profitable success in crypto investment