Corporate insiders and affiliates can often be overwhelmed by the rules and regulations associated with the trading of their company's securities.  Whether we are helping with a Cashless Options Exercise or assisting in the sale of previously acquired restricted stock, we have Rule 144 and 145 professionals available to walk you through the process.

When your goal is to diversify away from your concentrated, restricted position, the sale of your shares could prove to be the most direct diversification strategy, because you are exchanging your shares for cash which can be immediately used for diversification. The drawback of selling your shares today would be the immediate tax event that would result, reducing the amount of investable funds. Also, a stock sale eliminates any potential further capital appreciation in that stock.

Our approach is to present you with all of the potential hedging and diversification strategies, some of which may be better received by the investing community than an outright share sale.  Some strategies may also be more in line with your outlook on the future of the company's share price.  If we agree that a sale strategy is best for you, we will work quickly to identify and satisfy all legal rules and restrictions involved with your shares.  Once we are certain that all of these complex regulations have been satisfied, our professional trading staff will work to provide the best execution possible for the sale of your stock.

Any comments regarding tax implications are informational only. Scott & Stringfellow does not provide tax or legal advice. As always, you should consult your tax or legal advisor.