Restricted securities

Restricted stock sale planning: separate eligibility from strategy.

Eligibility answers whether shares can be sold. Strategy answers how much to sell, how quickly, which accounts receive proceeds, and how the remaining stock fits into the balance sheet.

Typical holders

• Founders and seed investors after lockup or holding-period milestones.
• Executives, directors, and affiliates with control stock.
• Consultants or service providers paid in private company shares.
• Investors holding shares from private placements or affiliate transfers.

Financial planning questions

• How much liquidity is enough to reduce personal risk?
• What single-company exposure target should remain after the sale?
• Should sales be staged, price-conditioned, or coordinated with a 10b5-1 plan?
• What investment policy receives the proceeds?

Use the Rule 144 sale checklist and review the legend removal broker process.