Modeling Owned and Restricted Share Diversification Scenarios

IMAGE: Natalie Rhea Riggs / Unsplash Advisors and their clients with sizable holdings of employer stock will both benefit from systematic share diversification of these positions. For the client it means reduced risk and peace of mind, and for the advisor it means additional assets under management. Most executives will agree that concentrated company stock positions are risky and diversification is financially prudent, but taking timely action is often a different matter. There are a number of factors that may...

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Understanding the StockOpter Share Diversification Analysis

This article was updated in January 2019 to reflect functional modifications to the StockOpter.com Share Diversification Analysis. Originally this function compared the value of a client's owned shares to the value of their other investments over a 5 year period. This ignored the value of any vested stock options and subsequently underestimated the overall level of concentration. This updated version of the StockOpter Diversification Analysis factors in option value to illustrate how owned share diversification effects concentrated stock positions.  As...

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