Navigate money 57
View Transcript
Person 1: My employee shares of the startup, where I work, will fully vest next week. I can sell them in the secondary market. Most of my net worth is tied to them. Should I sell them or hold them?
Person 2: You are facing a high risk as you are exposed heavily to a single company. So, sell them and invest the realised money in a diversified portfolio.
Person 1: I have confidence that the price of my shares will go up further. So, is it better to not sell for a while?
Person 2: Even if you believe in the future increase in share price, it’s better you sell so that you can diversify your exposure.