Secondary Market Guide
Your Guide to Equity & Liquidity
This hub is designed to help you understand the ins and outs of your equity and navigate the private secondary market with confidence. We’ve broken down complex topics into clear, easy-to-understand articles.
Understanding Your Equity
Learn the basics of company ownership, how your shares are granted, and what they mean for you.
- Equity Explained What It Is and Why It Matters
- Common Stock
- Preferred Stock
- Common Stock vs Preferred Stock Key Differences
- Stock Options
- Understanding Your Stock Options ISO vs NSO
- ISO Incentive Stock Option
- NSO Non Qualified Stock Option
- RSUs Restricted Stock Units How They Work
- Vesting
- Vesting Earning Your Equity Over Time
- Vesting Schedule
- Vesting Schedule Decoding Your Grant
- Cliff Vesting
- Exercise Price Strike Price What It Means for You
- Exercising Options
- Grant Date
- Expiration Date (for options)
- Grant Date vs Expiration Date Important Timelines
- The Cap Table (Capitalization Table) Who Owns What
- Cap Table
- Valuation How Private Companies Are Valued
- Understanding Private Market Valuations
- Dilution Protecting Your Share of the Pie
- Diluted Shares
- Employee Stock Purchase Plans ESPPs Another Way to Acquire Stock
The Secondary Market & Liquidity
Explore why and how individuals and companies engage in private share sales.
- Liquidity Unlocking Your Equitys Value
- The Importance of Planning for Liquidity
- Life Events Liquidity When a Sale Makes Sense
- The Primary Market
- Secondary Market
- The Primary Market vs Secondary Market Where Shares Change Hands
- What is a Pre IPO Sale
- Pre IPO
- Why Sell Shares on the Secondary Market
- Company Friendly Liquidity What It Means for Your Company
- The IPO Initial Public Offering What Happens Next
- IPO Initial Public Offering
- Lock Up Periods When You Cant Sell Yet
- Tender Offers Company Approved Sales
- The History of Secondary Markets
- Private Company
- Public Company
- Private Company vs Public Company Key Differences
- Private Market Exchange
Selling Your Shares with Earlyasset
A step-by-step guide to using Earlyasset’s platform for your liquidity needs.
- Selling Your Shares with Earlyasset The Process
- Instant Offer Getting Indicative Pricing
- Indicative Pricing
- Executing Your Stock Options Before You Sell
- Net Exercise Cashless Exercise Efficient Option Strategies
- Cashless Exercise
- The Role of Due Diligence in a Secondary Sale
- Due Diligence
- Understanding Bid Ask Spreads in Private Markets
- Bid Ask Spread
- Escrow Protecting Both Buyers and Sellers
- Accredited Investor Who Can Buy Private Shares
- Common Misconceptions About Selling Private Shares
- Earlyassets Confidentiality Promise
- Control Over Timing Your Liquidity
- Low Friction Execution Our Approach
Tax & Legal Considerations
Important information on the tax and legal implications of selling private shares.
- Capital Gains Tax
- Capital Gains Tax Long Term vs Short Term
- Ordinary Income Tax on Equity Compensation
- Alternative Minimum Tax AMT A Closer Look
- Qualified Small Business Stock QSBS Potential Tax Savings
- Tax Basis Calculating Your Cost
- Understanding Your Shareholder Agreement
- Shareholder Agreement
- Legal Considerations in Secondary Sales
- Right of First Refusal ROFR Companys Option to Buy Back
- Co Sale Rights Tag Along Rights Protecting Minority Shareholders
- Drag Along Rights When You Must Sell
- Liquidation Preference What Investors Get First
Beyond Individual Sales: Company Tools & Concepts
For issuing companies, investors, and those looking for a deeper dive.
- SecondaryOS How Companies Manage Secondary Sales
- Benefits of Consolidating Cap Tables with SecondaryOS
- Ensuring Discrete Secondary Trades with SecondaryOS
- Venture Capital VC Angel Investors Who Are They
- Angel Investor
- Fund to Fund Transfers Moving Shares Between Funds
- The Role of a Transfer Agent
- Portfolio Tracker Monitoring Your Private Equity