question on purchasing company stock (trading, dividend, income, stocks)

[new york 10]

Hello all, was wondering if anyone can help me out (some advise) with purchasing company stocks.. ive been granted some company stock options , purchased at $65 for 43 shares when it was trading at $113 . The dividend pay out (have received two) .81 per share. Any advise what to do with this hold for the long haul or sell when it spikes... Sorry if im asking a silly request this was my first purchase of stocks... Some info the total transaction cost me around $3,320.00 , for a total of 43 shares.

[jdhpa]

Without knowing anything about your particular situation or needs, I can only tell you what I would do (which may or may not be appropriate for you).

Unless you have some specific reason for believing it's going to move significantly higher or lower from here, I would wait a few days past 12 months from the purchase date (to get the long term capital gains tax rate), sell it, and split the proceeds between the SPY and QQQ ETFs, probably 75% SPY / 25% QQQ.

Don't forget to take out what you'll need to pay Federal and State income taxes.

Best of luck, whatever you decide to do

[Big-Bucks]

Is this the company you work for? If so why would you put so many eggs in one basket? Not smart from a diversification perspective.

[SuiteLiving]

Originally Posted by new york 10

Hello all, was wondering if anyone can help me out (some advise) with purchasing company stocks.. ive been granted some company stock options , purchased at $65 for 43 shares when it was trading at $113 . The dividend pay out (have received two) .81 per share. Any advise what to do with this hold for the long haul or sell when it spikes... Sorry if im asking a silly request this was my first purchase of stocks... Some info the total transaction cost me around $3,320.00 , for a total of 43 shares.

from the facts you gave, it sounds like these were nonqualified stock options so you were taxed on them at the time of exercise and your tax basis in the shares is $113. Please confirm that since it makes a big difference if I'm wrong on that and they were ISOs.

Has the company granted you more options? In a lot of cases companies will have annual grants of options since its part of the compensation program. If that's the case, and they're nonqualified options, I'd go ahead and sell them and ride the upside of the stock with the other options.