Author Topic: What to do with company stock  (Read 2037 times)

somebody8198

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What to do with company stock
« on: March 16, 2016, 06:17:59 AM »
As part of a previous company's compensation package, I received some vested shares. The company set up a managed account for them and after I left the company they stopped paying the maintenance fee. The long and short of it is, I now have to pay an annual maintenance fee of ~3% to keep this account open. The thing is, the stock has performed very badly. This isn't Apple stock. It's basically tanked, lost almost 90% of its value since the IPO. Would you sell and just take the loss, or would you keep paying the maintenance fee, hoping that the stock recovers some day?

zephyr911

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Re: What to do with company stock
« Reply #1 on: March 16, 2016, 06:58:08 AM »
You didn't say what you think of the company's long-term prospects, but 3% annually on anything is f@#$ ridiculous.
I would cash out and harvest the loss against something else if possible.

mjs111

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Re: What to do with company stock
« Reply #2 on: March 16, 2016, 08:42:07 AM »
3% is nuts. With a 90% loss and a 3% maintenance fee you're best off selling and closing the account.  Use the capital loss to offset capital gains or $3,000 of regular income on 2016's tax return.


Mike

GrowingTheGreen

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Re: What to do with company stock
« Reply #3 on: March 16, 2016, 11:47:06 AM »
You didn't say what you think of the company's long-term prospects, but 3% annually on anything is f@#$ ridiculous.
I would cash out and harvest the loss against something else if possible.

Agreed.  Only silver lining is capital loss!

zephyr911

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Re: What to do with company stock
« Reply #4 on: March 16, 2016, 02:01:53 PM »
Side note: even if you thought the company was poised for a massive turnaround, you'd still be better holding the shares somewhere else. Get outta that shitty-ass account ASAP.