RE:RE:I hate this stock swings!Those are all RSUs and are considered as income and have to pay tax on it and sometimes they sell it to pay the taxes.
hat Is a Restricted Stock Unit (RSU)?
A restricted stock unit (RSU) is a form of compensation issued by an employer to an employee in the form of company shares. Restricted stock units are issued to an employee through a vesting plan and distribution schedule after achieving required performance milestones or upon remaining with their employer for a particular length of time.
RSUs give an employee interest in company stock but they have no tangible value until vesting is complete. The restricted stock units are assigned a fair market value when they vest. Upon vesting, they are considered income, and a portion of the shares is withheld to pay income taxes. The employee receives the remaining shares and can sell them at his or her discretion.
KEY TAKEAWAYS
- Restricted stock units (RSUs) are a form of stock-based employee compensation.
- RSUs are restricted during a vesting period that may last several years, during which time they cannot be sold. Once vested, the RSUs are just like any other shares of company stock.
- Unlike stock options or warrants which may expire worthless, RSUs will always have some value based on the underlying shares.
- For tax purposes the entire value of vested RSUs must be included as ordinary income in the year of vesting.