Coach’s Corner

A common misperception about initial public offerings (IPOs) is that they are an immediate liquidity event for both the company and its shareholders. Yet, more often than not, shareholders can be subject to sale restrictions and holding periods, and, if they have the ability to liquidate, they may not plan to do so.

Many investors have become complacent sitting on the sidelines due to the high yields they've been earning on cash. Complacency is a strong driver of inertia, perhaps the strongest of all.

One of the best examples of Uncle Sam being a coach, rather than a referee, is the qualified small business stock (QSBS) exclusion. While you don't need to know the ins and outs of the Internal Revenue Code (IRC), understanding the benefits of QSBS from a tax perspective can help you ask questions to spot issues and opportunities that should be addressed by your clients' tax advisors.