My employer will be giving us RSU, I’m trying to figure out how exactly it works and if it’s something that I can just cash out?
In: Other
Basically it is a promise you will get N stocks of the company by date X.
When date X arrives, and you are still working for the company, your brokerage account will be up by N stocks, minus whatever was sold to pay for taxes and transaction fees. These stocks are considered ordinary income, so the value of the N stocks that day adds up to your W2 income.
You then hold your stocks in your brokerage account as if you bought it in the market. You can hold it or sell it, and any appreciation is considered capital gains/losses
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