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Uncovering Hidden Investment Opportunities Since 1972

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Keep Up With the Stock Market News for Profitable Trading

October 12, 2017

There are many modes of investment, if you are planning ahead to invest your capital in some profitable option. Amongst the many options, one is to invest money in today's stock market. If you have decided to do so, you have been taking one of the most intelligent decisions in your life. So, you might wonder why this is so.


It is simple that investing in a stock market does not demand one to start with bigger sum only. You can start with the least you have by investing first into small cap stocks and then increase your investment if you wish to or if your financial condition permits to do so. So, isn't this one of the interesting facts of today's market that is open for all, regardless of your financial conditions?


Then, further if you have finally planned to make your investments in this profitable and high end market, you need to stock yourself with the market news that is currently prevailing in the market. This is of great importance because it will help you largely to come to the precise decision in terms of trading. These stock market update keeps you well informed and notified about the present situation of the stock market and many other things like which company to select for trading, know about which sector is doing well, and many more issues. Apart from all this, it also offers a great insight regarding the active shares of the stock market.


Once you invest your high earned sum in the market, you will be tempted each time to know as to what is going on with your investments. Of course, it does make sense and you can get to know about this only if you remain in touch with the market news and update in the market through various Medias like television, magazines, news channel, and internet and so on.


Moreover, keep in mind that never expects the stock market to run in your favor. It is a very volatile market that takes its own course based on the different market conditions. You have to be a wise investor and a smart trader and take proper decisions in terms of investments and trading based on your skills, abilities and past experiences. Stock trading effectively demands one to be aware of the precise time in terms of selling and buying. Once you master these pre-requisites, you can be a successful trader, very soon.


For more info, consult with the experts at C.L. King & Associates. C.L. King is a full-service investment bank and self-clearing broker-dealer founded in 1972. The company co-manage IPOs, follow-ons, secondaries, convertibles, preferreds and bond offerings. We also provide advisory services in connection with mergers, acquisitions, divestitures, valuation, and review of strategic alternatives. In addition, C.L. King transacts directly in the capital markets on behalf of corporations and executives through our Corporate Services business focused on share repurchase and the monetization of restricted stock.

Know About Equity Market Trading

October 9, 2017

Equity Tips are referred as a financial equipment of a company to welcome the investors to invest their money in the company. Equity trading is primarily the purchase or sale of company stock through, just as stock trading. An equity trading can be placed by the owner of the shares, through an agent or broker or by brokerage account. Because it is equity, there is no need to repay the funds, or make interest payments. It is very essential to get the Equity Tips before enter into share market. The investments are not limited to stocks only. Share market is the one where the shares are eccentrically issued and traded either on the direct trade market or exchanges. It is also known as the stock market and it is an essential part of an economy. A finer perception of equity tips will make the investors to get a better observation of the uncertainties of the equity market and help them in the process of attaining aim of monetary benefits. Therefore, tips are vital. Regular research and up to date knowledge is also required to come up with share tips that work perfectly. This surely is a commodious task which will requires great deal of resources and expertise.


Equity markets are on common place due to the absolute relationship with various global and local connections are involved. As the instabilities develop in the market, there is a need to acquire the best equity tips. To invest in Stock market, you have to learn how to make more money and for many people the additional income from the stock market is the major source of earnings. Gathering the wrong information of the stocks and gaining outdated data of the stock market might lead you to bankrupt which you need to be excessively, aware about it. Research by the equity research analysts is skillfully examined by the stake holders from large companies to single investors, who have spent a part of their principal in market. The equity tips which are provided by the researchers are very informative and trustable which help the common people to increase their capital by the tips provided by the researchers. Potential investors should look out for the best standardized team and invest in order to improve their portfolio.


Some people can be found in the stock market India, who were desired at quick profits and they incline to buy and sell equally fast. But for this type of people knowing the stock or equity tips are very necessary. Investors may also consult the unregistered, privately-owned organizations which provides by their researchers. These steps are needed because the position of the market can be changes time to time and even if the share market is not stable by following the advices one can avoid a huge amount of loss which can be caused otherwise.


For more info consult with the experts at C.L. King & Associates
C.L. King’s Equities division provides superior fundamental research, sales and execution services to our institutional clientele. Our professionals embody an entrepreneurial drive for excellence as well as a commitment to work with our clients to help them achieve and exceed their investment objectives. We identify opportunities for superior investment returns by discovering overlooked and underfollowed small- to mid-capitalization stocks within select industry sectors, while providing differentiated and comprehensive intelligence.
For more about our services, please contact to us at 518.447.8050

Investing Research is Important

October 5, 2017

With any type of investment or business, research is important. This will allow you to know what to expect and also have the ability to be able to distinguish a diamond in the rough. This particular article will explain some of the market research you want to undertake before buying commercial real estate in a market.


Before you write an offer for any market, you're going to want to spend some time getting a feel for the market. Doing this before you look at deals will allow you to move much more quickly when recognizing a potentially good deal as much of your due diligence has already been done. How can you know what a good deal is without research? You will have little background on which to judge investment deals. Your market research can and should include most of the following information: what rent is going for an area, who the large employers are, and what the smaller sub-markets are doing. What are home sales like in the area? Where is job growth going to come from and what kind of jobs will these be? Where will new transportation be? What is the current rental market like? Asking all of these questions gives you an idea of the bigger picture and explains the economics of the area. Knowing the current situation along with where future trends lie will allow you to assess a deal for current viability along with future appreciation based upon the trends that you have researched.


Secondly, look at some comparables with in the area. Taking time to study these will let you understand what the market is truly like. This will allow you to know prices within an area (as well as sub markets) and roughly what you can expect to pay if paying market price. This can help you quickly determine if a prospective deal is brought to you whether it is undervalued and whether you might be able to create forced appreciation very quickly. Look at as many comparables as possible and most experts recommend around the last fifty. This can allow you to see what has happened over a period of time and lessens the impact that outliers can have upon the data due to the larger data pool you are using.


Remember that you do not have to find all this information yourself. Use the services of an experienced broker like CL King & Associates. They are experienced very well to help you succeed. You must make the broker feel comfortable knowing that you will work for him as much as he will work for you. The importance of using a broker is that here he is in this particular market every day. He or she should know what the hot areas are and should be able to bring you some potentially good deals. You are paying for the brokers' expertise to do not be afraid to ask questions as you do your market research.


CL King & Associates, Inc. operates as a self-clearing service-oriented broker-dealer and an investment bank. The firm offers investment research, equity and fixed income sales and trading, prime brokerage, investment advisory, and clearing services. Additionally, it provides security underwriting and strategic advisory services for mergers, acquisitions, strategic alternatives, and valuation.

Can You Trust Stock Brokers?

October 2, 2017

'Can you trust stock brokers?' Talk about a loaded question. Anytime you're trying to evaluate the trustworthiness of a whole profession or a wide class of people, you might run into the very common problem of stereotyping. One bad apple (or a few dozen) doesn't necessarily have to spoil all apples. Still, many people do think in terms of generalities and this is a reality we have to live with. Here are some important factors to consider when trying deciding whether you can trust stock brokers or not.


Which stock broker?

In deciding whether you can trust stock brokers or not, you have to remember that there are actually many different types of stock brokers. Many people lump all brokers in one class and judge this class. This is not fair considering the different types of stock brokers out there. Here are just a few of the most common classes of stock brokers.


Trading broker

This stock broker just executes your trades for you. This broker doesn't make any recommendations regarding which stock to buy or sell.


Sales broker

This stockbroker actively 'pitches' clients on stocks to buy. By law, such brokers are required to disclose if their company has a vested interest in the stocks they are pushing.



While not technically a stockbroker, analysts are very influential opinion makers in the world of stocks. They study particular stocks or industries and recommend stock buys or sales. Like sales brokers, they are required by law to disclose whether the company they work or they themselves have an interest in the stocks they are recommending.


As you can tell from the descriptions above, it would not be fair to say trading brokers are 'untrustworthy' because they merely execute trades on behalf of their clients. It would be fair to ask, however, whether you can trust an analyst or a sales broker. While most of these brokers are on the up and up, there are quite a number of shady operators who give the whole industry a bad name. Many of the more aggressive shady operators use boiler room operations and pressure sales tactics to victimize investors. What follows is a quick guide on how you can protect yourself from shady stock brokers and stock sales operators.


Protecting yourself from shady operators: a basic guide

This guide is not meant to be an exhaustive guide on how to avoid being victimized by shady stock brokers. Instead, this guide lays the basic groundwork you should follow to minimize your chances of being ripped off. As always, if something is too good to be true, it usually is.


How to Find Brokerage Companies to Trust with Your Money?

Trust only Legitimate Companies

Companies spend a lot of time and money building a solid corporate brand. A solid brand is the result of many satisfied customers and a very minimal level of customer complaints. Not all businesses and firms in the financial industry can lay claim to a solid brand. If you get solicited by a stockbroker, either over the phone or through an email or physical mail, your eyes should quickly search the message for the logo of a company you can recognize. If you don't recognize the company, research it quickly online. If it is a solid company with a solid reputation, you should be able to quickly dig up many mentions of the company as well as possible awards or big projects.


Ask to see the research

Assuming that you're dealing with a legitimate company, don't let this fact lull you into thinking that you should do business with the broker. You need to be vigilant. Just because you are dealing with a company with a good reputation doesn't necessarily mean you won't get ripped off. There is always a first time for everything. Ask the broker for research materials and other objective information you can research which backs up the broker's conclusion that the stock he or she is recommending is due for a 'breakthrough.' Pay attention to earnings, earnings growth, industry ranking, market share, and industry growth so you can make a truly informed decision. Don't just take the broker's word for it.


Take what you read online with a grain of salt

Your next step is to do research on the individual company being recommended to you. Take a look at what other people have to say about the company. At this stage, you have to remember that there is no such thing as 100% favorabilitiy. There will always be negative stuff online because there are haters all over the Internet. In fact, many negative blog posts and articles are actually written by competitors of the company. This is not the problem. The problem is if you see a constant negative pattern. Where there is smoke there is fire, after all. If you see such a pattern regarding the company you're researching, stay out of the stock. When in doubt, stay out.


Be on your guard when researching stock forums

Another resource you should check is stock forums. You'd be surprised at the nuggets you can unearth using stock forums when researching your stock picks. With that said, keep in mind that there are many people engaged in 'pump and dump' scams on stock forums. Be on your guard. Always look for secondary information besides what the promoter or poster is saying regarding a certain stock.


Can you trust stock brokers? The answer, of course, is it depends. It depends on the type of stockbroker, and it depends on the nature of the investment opportunity the broker is pushing. By following the tips listed above, you can increase your chances of avoiding victimization by boiler room operations and pump and dump schemes.


For more info you can consult with the experts at C.L. King & Associates. C.L. King is a full-service investment bank and self-clearing broker-dealer founded in 1972. We provide investment banking, equity research, sales and trading, and investor services to corporations and institutions.
Also read: Role of Stock Broker Firms in Providing Intraday Tips

How This Infrastructure Bonds Vital to Investment Banking?

September 28, 2017

Many people have not recognized the fact that the modern economy is a huge global network. Banking is comprised of commercial banking, consumer banking, investment, asset management, global corporate and investment banking. Investment bank render financial services for clients, such as foreign exchange, fixed income, trading of derivatives, commodity, equities or advisory services for acquisitions and mergers.


Investment banks are defined as firms that assist other companies in growing their financial capital in the capital markets. And this is done through bonds and stock. They perform initial public offerings, act as brokers and trades on bonds and securities. In this write-up, we will give you the seven importance of investment banking


The importance of investment banking is numerous to mention, but the following are some of them.

  • Initial Public Offerings: They are responsible in facilitating private and public corporation's initial public offering through the provision of underwritten services. Other services include foreign exchange management, acting like intermediaries in trading for clients.
  • Investment management: Investment Bankers provides advice to investors to manage and trade various securities such as bonds and shares, to purchase securities and other assets like mutual funds, hedge fund, and real estate etc. Those known as investor may be big fund houses, financial institutions or private investors. In the investment banks, there is the investment division and it is divided into different groups, namely private client services and private wealth management.
  • Boutiques: Boutiques are small investment banking companies that provide financial services. They are specialized in the trading of bonds, provision of technical analysis, advising for acquisitions and mergers etc.
  • Mergers and Acquisitions: Another importance of the investment banking includes the corporate finance and mergers and acquisitions, which comprises of coordinating with bidders, subscribing to a security insurance or the negotiation with a merger target. 
  • Structuring of Derivatives: This is a recent division comprising of highly technical and proficient workers working on the creation of a complex structured derivate products. These products normally render much greater returns and margins than basic cash securities.
  • Research: This is another importance in investment banking. They review companies and write reports about their prospect with buying or selling ratings. There isn't any direct revenue generation through research, instead the information produced or gathered by them is used in guiding investors and for acquisitions and mergers.
  • Risk management: This is an activity that is continuous and involves the analyzing of the credit risk and market, which buyers are taking onto the balance sheet in carrying out their daily trades. With this, they are able to set limits on the amount of capital.


In general, Investment banks are banks that

  • Acts as middlemen between investors and issuers.
  • Delivers financial, strategic and valuation counselling services.
  • Increases capital via the issuance of private equity, securities and debt.
  • Counsels companies in merger and acquisition and rearranging transactions
  • Offers special products and services to the corporate and government clients.


C.L. King & Associates is a full-service investment bank and self-clearing broker-dealer founded in 1972. We provide investment banking, equity research, sales and trading, and investor services to corporations and institutions.

Also read: CL King Tips for Investing in High Yield Bond Mutual Funds

Institutional Investors See Advantages in Index Funds

September 25, 2017

Institutional investors are a segment of the market consisting of traders who make large trades that qualify them for preferential treatment with a broker. This can include lower commissions and fewer regulations that dictate their market participation. Examples of institutional investors are pension funds and other types of large entities that buy quantities of shares in bulk amounts.


This type of investor can buy shares in many types of market products that include individual stocks, various types of bonds and specific commodities. However, an institutional investor many also decide on a type of index fund instead of individual securities. One type of index fund that is an option to a passive institutional investor is an exchange traded fund. This type of fund is traded on stock exchange has assets that include stocks, bonds and commodities. They track an index such as the S&P 500.


The use of an exchange traded fund is beneficial to the institutional investor because of the ability to be flexible. This type of market vehicle is often seen as an alternative to using futures. This type of product does not require the use of margins, a special account or documentation that may be necessary for other types of financial products. Using this type of investment allows for tracking a market segment or product without having to buy large quantities of an individual security.


Other types of institutional investor that are more active include hedge funds. Investments for this type of fund are convenient for active traders because they are traded in the same way as stocks. Funds offer flexibility that is not available with other types of index funds. Traders will also benefit from the use of exchange traded funds because they are not included in the short sale uptick rule.


This use of exchange traded funds or available in many markets such as those in countries in Asia. This will include the Singapore Exchange and the Hong Kong Exchange. Investors in these markets have access to funds that are not available in the European and American markets. However, the type of fund that is used for an investment vehicle will depend on various factors such as risk and return.


Traders that will take advantage of exchange traded funds are those that seek to have long-term growth of capital and active returns on their investment. They are a great way to track the investment return of a market segment or specific type of financial product.


C.L. King Corporate Access is a strong partner in building investor relationships with a long-standing commitment and track record of facilitating meaningful dialogue between public company managements and institutional investors. By leveraging our first-hand account knowledge and deep relationships, C.L. King brings together investors and the company managements they would like to meet in such forums as non-deal road shows, one-on-one or group meetings, and conference calls.

Also read: Could Structured Bond Products Be the Right Investment Option for You

Invest in Your Future with Investment Banking

September 21, 2017

When a company wants to increase their capital they will offer opportunities to the public to buy into their company. In other words, the public has the opportunity to purchase part of the company's worth. The public will purchase what is known as securities or stocks and bonds in the company.


In order for the company to be able to do this it will engage in what is known as investment banking. The main role of this practice is to help companies increase or raise enough capital by selling investment securities to the public.


Many of us have heard about stocks, bonds, and Wall Street. However, many of us don't know enough about the industry in any meaningful way. A simple way of understanding investing is to think of it as a way to save and make money simultaneously. An investment banking account is similar to a regular account in that it is a way to perform financial transactions. Unlike a regular account, investment banking accounts are much more complex, and the rewards can be much greater.


The reason many people don't consider this practice is because most investment institutions do not transact with cash or the traditional interest like most commercial institutions do. Investment banks primarily deal with stocks, bonds, and securities. They lend these securities to their customers based on the price or value of the stocks listed in the trade markets.


Companies or individuals can set up escrow accounts as opposed to checking or savings accounts. Most will have a consultant working with them who is also known as an investment banker. These professionals are experienced in all aspects of investments and the stock market. In short, they oversee the entire account while the owner - the corporation or individual - doesn't have much involvement over the day-to-day supervision or operation of the account.


In fact, the owners don't even manage how much or what type of investments are made to the account. The laws and regulations governing the accounts can be very complicated at times, which is why it's important and necessary to have an investment banker handling the account.


Although corporations generally use this practice, it is not just for companies; in fact, it is open to the public and is a great way to capitalize on your future. Stocks, bonds, and other securities are often seen as more stable and reliable than cash, especially during difficult economic times. To understand more, contact your commercial financial institution to see if they can refer you to someone informed on the matter. Speak to an expert to make sure you discuss all of your concerns and have a good understanding of how everything works. It's always important to educate yourself due to the inherent risk of losing money when dealing with stocks, bonds, and securities.


C.L. King & Associates provide investment banking, equity research, sales and trading, and investor services to corporations and institutions.
Since our founding in 1972, CL King has evolved from an equity boutique to a full-service investment bank. Our focus on debt and equity capital markets remains the core of our robust platform supported by a well-respected research, sales, trading and clearing operation. 
To learn more about how C.L. King & Associates ’s capabilities align with your long-term goals, please contact us at 212.364.1830

Stock Analysis - The Essence of Stock Picking

August 9, 2017

Stock analysis is a key element in order to purposefully come up with stock market predictions. When it comes to personal finance and the accretion of financial wealth, many people look to the stock market. The reason is simple: Participating in the stock market is stimulating. But as with any other type of investment, there are always risks and challenges entailed. In order to play it safely, you have to arm yourself with relevant information and formulate strategies that work and keep you comparatively safe. This is particularly important because there is no foolproof approach in terms of stock picking. The best way for you to survive this roller coaster of an endeavor is to keep yourself informed and to stay true to established strategies for staying afloat.


Stock analysis has two types: fundamental and technical. These two are exceptionally significant factors in determining the direction of the stock market. Practically all stock market trading systems depend on one or both forms. Fundamental analysis is all about a company's fiscal status, its earnings, and financial assets, along with its debt. The goal is to find the intrinsic value, or the real worth, of a stock. Technical analysis focuses on the history of stock share prices and volumes, previous market activity, and the path that the stock market is taking. The objective is to use the data to make conjectures about the potential movement of the price of a stock.


Having confidence stemming from the rooted know how on these two methods is an excellent quality in an investor. Many individuals often look at technical analysis as the more significant of the two. But some professionals point out that analyzing the fundamentals of a particular stock can put you considerable steps ahead of your trading peers. Meanwhile, technical analysis, as some experts indicate, employs completely different theories and uses a totally distinct set of criteria as compared with fundamental analysis. The bottom line, though, is that there is no single approach to pick stocks.


If you are a beginning investor, you can learn about the essentials of investing through stock analysis software made available by many companies, or through online discount brokers. Or, you can subscribe to various financial websites that provide educational, valuable materials and vast information on investing. These sites would typically focus on the basics needed to learn and understand the workings of the stock market. Most often, these websites will offer information about stock trading and investment, trading strategies and ideas, relevant stock picks, as well as useful techniques to help investors maneuver their way around the stock market.


Becoming a good stock-picker can influence your wealth accumulation objectives to a great extent. If you develop the dexterity to pick stocks, you will have better chances of accomplishing the main reason why you are in the stock market in the first place: wealth. Many industry gurus, however, reiterate the fact that investing in the stock market using different strategies is nothing more than applying a concept or a theory. For that reason, you will be better off if you can determine the best strategy that will fit your investing style, your tolerance for risk as well as the amount of time you can in investing and picking stocks.


C.L. King’s Equities division provides superior fundamental research, sales and execution services to our institutional clientele. Our professionals embody an entrepreneurial drive for excellence as well as a commitment to work with our clients to help them achieve and exceed their investment objectives. We identify opportunities for superior investment returns by discovering overlooked and underfollowed small- to mid-capitalization stocks within select industry sectors, while providing differentiated and comprehensive intelligence. We put our customers first as we respond to their needs for integrity, independent thinking, in-depth stock analysis and best execution.


We’re pleased to announce that CL King Analysts Mike Gallo and Scott Stember have been recognized as Top Stock Pickers in the 2017 Thomson Reuters United States Analyst Awards, which were previously known as StarMine awards.

Also read: Importance of Market Research and Analysis to Run a Business

The Benefits Of A Good Stock Option Plan

August 5, 2017
Stock option plan provisions can deliver tremendous benefits for employers seeking to employ a quality staff, and to employees who are looking for a more secure future for themselves and their families. Stock option plan systems are becoming more and more popular; this has become an inevitable consequence since their introduction some years ago. As companies start to witness competition when doing quality personnel recruitment based on the incentives they find themselves capable of offering, they are certain to attempt to implement their own systems that are similar to their rivals to remain competitive. The securing of stock incentives has become one of the most highly desired of all benefits sought after by people looking for steady long term work.
A stock plan is rapidly becoming indispensable for many industries, where personnel performance is entirely dependent on the ability to recruit quality personnel. It is easy for the employer to implement such plans without taking any unnecessary risks, since the share price of the company stock will only go up dramatically on the back of good productivity of the stock plan owners, the employees. Should the company not be doing well and the stock price drops, the shares will remain in the employees hands, unconverted into cash.
The employee stock plan can be considered an incentive that can be put into effect with very small risk. However, it can result in an increase in the value of the stock option plan a company can offer its employees without having to spend any money upfront. This kind of incentive is very advantageous for start up companies, because those companies would encounter great difficulty in raising large sums of money at the startup phase of the life of the company. By making an incentive payment due at a deferred date in the future, a company can take advantage of the benefits now and can wait till later on in its life to pay for it.
Stock option plans can wind up being very profitable for an employee, and provide them a variety of beneficial choices to choose from. Quite frequently, stock options are often thought of as just a safe vehicle to get involved in the stock market, with the opportunity to purchase shares of stock in the company they work for without regard to how high the stock climbs. Of course, this is a usual way to benefit from stock options, but it is not the only way. Someone that expects to use their stock option plan for the achievement of short term gains will always have the problem of stock market uncertainty to deal with.
A much more prudent way to utilize your employee stock purchase plan would be to think of it as an advantageous way to get involved in the stock market. Rather than just selling the stock at a point in time when the stock has risen substantially, a stop loss can be set at a price one would consider selling at should the price fall. By taking this action, a guarantee will be in place providing the opportunity to sell shares at that predetermined price, while at the same time giving the owner an opportunity of gaining from a further rise of the share price in the future. Should the stop loss placed on the stock fail to be hit, there will be no limitations placed on how far the stock can go with a subsequent benefit from the rise. By employing this strategy, someone would be in a position to gain the maximum potential benefit from owning the stock as the stock rises, no matter how far it rises. This strategy will get someone the most out of their stock option plan.
C.L. King & Associates is a full-service investment bank and self-clearing broker-dealer founded in 1972. We provide investment banking, equity research, sales and trading, and investor services to corporations and institutions.
We offer professional assistance and tailored option exercise programs for your incentive stock options, non-qualified stock options and stock options granted to affiliates. C.L. King will create a customized plan to coordinate the tracking, financing and exercising of stock options. We will tailor our procedures to meet your needs and ensure that you receive same-day notification of affiliate transactions for Form 4 reporting purposes. In general, options can be exercised as follows:
  • Same-day sale, where no cash outlay is necessary
  • Cash exercise, where an employee actually pays both costs and taxes
  • Partial same day sale, where an employee sells just enough stock to cover the option cost and taxes and then exercises the remaining options in order to hold the underlying stock.

To contact us, please visit here:

As Options Fade - Restricted Stock Gains In Popularity

August 2, 2017

As publicly traded companies move away from stock options as a way to reward and motivate their employees, there's a growing trend to issue "restricted stock" as an alternate compensation choice.

Unlike options that give employees an opportunity to buy into a company, restricted stock is direct ownership from day one. However, because of various limitations placed upon this type of stock, it is deemed restricted in nature.


These restrictions usually begin with a vesting period that determines when the stock can be sold. The vesting period can be determined by a time period or by certain goals that must be met. A typical time period might be 4 years of employment with the company before you can sell your shares. If you leave prior to vesting, then you will forfeit the restricted shares. In concept this is not unlike the vesting and forfeiture components of qualified pension plans.

When vesting is set by a goal, a time period may be irrelevant. For example, vesting may happen when sales exceed $150 million regardless when this occurs.


Once vested, you gain actual ownership of the stock. On the other hand, vesting in options doesn't give you ownership, but only the right to exercise the options to gain ownership. Many employers believe this gives restricted stock a motivtional edge in directing their efforts toward company goals.


Also, consider that options can expire and become worthless. A downturn in company stock price can make the exercise of options unprofitable. Restricted stock always has the intrinsic value of the market price. Even with a dip in price, you can cash out your restricted stock with a profit. An option with a strike price of $25 doesn't have any value if the stock is trading at $20 per share. Your restricted stock would still be worth $20 whatever the price at which it was granted.


Many companies are starting to replace their option programs with restricted stock awards. If you have been granted options in the past, restricted stock may well be part of your future.

Note, too, that the tax treatment of restricted stock is a little bit complicated. For this reason, it is recommended that you consult with a competent tax adviser whenever you are awarded any restricted stock.


C.L. King & Associates is a full-service investment bank and self-clearing broker-dealer founded in 1972. We guide clients through the sale of restricted and control stock and can sell your securities discreetly, with minimal market disruption. C.L. King has the experience to simplify the overwhelming paperwork and reporting responsibilities required by the SEC for the sale of restricted securities and can partner with your legal team to deliver immediate notification of completed transactions.
Contact us and we will guide you in achieving your investment goals.

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