Concentrated Equity Strategies

Some investors, often corporate executives who are compensated in part with stock, or family members who have inherited very large positions in a single stock, find themselves in an inherently risky position because so much depends on that one stock. Yet, the owner may either be unable to sell because of restrictions on the stock, or unwilling to sell low-cost-basis stock that will trigger substantial capital gains taxes.

Raymond James offers a number of methods designed to monetize concentrated equity positions and/or control the risks associated with them. These methods include options strategies, prepaid variable forwards, exchange funds, margin lending and gifting strategies.

As noted earlier, investing involves risk and no assurance exists that any management strategy will be successful. Similarly, diversification does not ensure a profit or guarantee against a loss.