How does Restricted Stock Units work?

394 viewsOther

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

5 Answers

Anonymous 0 Comments

An RSU is just you being given some number of stocks, likely as a result of performance, being at the company for some duration, etc. They differ from stock options in that with an option, you need to purchase them before you actually own the stock, whereas with an RSU, you just have the stock.

Now, whether or not you can just “cash out” the stocks depends on the company. If it’s publicly traded, I would assume you can. If not, then you would need to wait for some sort of secondary transaction, I would assume. Or maybe your company offers an alternate way to sell them, idk.

You are viewing 1 out of 5 answers, click here to view all answers.