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Startup

New York

Asked on Mar 30, 2021

Once my options have vested for the startup I am working for, can I sell them?

I am an early employee for a startup that has raised money in the past year. I will have some of my options vested soon and wanted to know if I was able to sell them.

1 Attorney answer

Answer

Startup

New York

Answered 248 days ago

Ramsey T.

ContractsCounsel verified

Business Lawyer
Licensed in New York
Free Consultation

It depends upon when you vest and whether or not you have a "market" for the shares. You must satisfy a holding requirement for your vested shares under US securities laws that requires that you hold your shares for at least one (1) year. The vesting period is added in - so, for example, if you vested in your options six months after receiving them and then exercised your options and tried to sell your shares, you would be in violation of US securities laws. After a one year holding period you may sell them. You might, however, have restrictions, such as a "Right of First Refusal" (a "ROFR") or other restrictions on selling your shares. Its worth checking all the documents and restrictions.

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