When budding entrepreneurs receive a boatload of shares of their likely-to-go public startup, those with financial planners often end up hedging those bets by selling some shares.
In so doing, they may limit their upside but also lock in a minimum net worth and protect themselves from losing everything if those share prices drop to zero, an all-too common occurrence. The strategy has kept many an entrepreneur from being wiped out when his company failed to take off.
Register or login for access to this item and much more
All Financial Planning content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access