How do I sell private company stock?
October 19, 2006
Subject: Stock Option rights question
Date: Fri, 15 Sep 2006
Hello Mr. Gray,
I recently terminated employment from a company where I worked for more than five years. I received stock options which are fully vested. The stock is not publicly traded.
Can I sell the stock back to the company or to another employee?
The options will lapse mid-October.
Any info would be greatly appreciated.
Date: Thu, 05 Oct 2006
Since the stock isn’t publicly traded, your only choices are to sell the shares to the company or in a private sale, probably to an employee.
You can’t “force” such a transaction.
Many people find they can’t sell the stock and have to let the options lapse.
If you find a buyer other than the company, you will need legal help to set up the transaction. You will also need to know how the company will report the transaction to determine the tax consequences.