How to sell your ESPP shares

"Selling Vested Stocks" transcript

Schwab brand music plays.

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Charles Schwab

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You'd like to sell shares from your company's employee stock purchase plan, also called an ESPP, or maybe you're just thinking about it.

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How to sell your ESPP shares.

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Here's how to do it online when the time comes.

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A sample Equity Awards account on Schwab.com appears. 

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First, you might want get a handle on what you have.

Once you've logged in to your account and clicked on the Equity Awards tab, you can use our award calculators to model different outcomes before you pull any triggers. 

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Screen zooms in closer. "Equity Awards" from the navigation menu is highlighted. Then "Award Calculators" is highlighted.

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If you just want to look over your share positions, select the Employee Stock Purchase Plan Shares link under Equity Today. 

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"Employee Stock Purchase Plan Shares" is highlighted.

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While you're looking over your purchases, you can see which lots you may want to sell. 

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Screen switches to reveal a sample of specific shares in the account.

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The Date Holding Period Met column indicates which shares have met the qualified period for preferential tax treatment, if your company's plan meets the IRS requirements.

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Screen zooms in to highlight "Date Holding Period Met." Then under that title, "Qualified" shares are highlighted.

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When you are ready to sell, click the gray "Sell" button found on the right side of your web page.

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Screen zooms out to reveal the full page, and the "Sell" button in the upper-right corner of the screen is highlighted.

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Remember—you can only sell shares of your company stock during your company's open trading window.

Next, choose the number of shares you want to sell for each lot you want to sell from.

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The word "Trade" from the navigation menu is selected. The screen switches to the Trade screen.

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The word "All-in-One" from the navigation menu is highlighted and the account selected is "Equity Award Center." The screen zooms in under the first step titled "1. Enter Order" and highlights the first field where information is needed. It is labeled "Symbol." The next menu item labeled "Strategy" with a drop-down menu is highlighted. The selection "Sell Shares" from that drop-down menu is selected and ESPP Shares of a sample company appears.

If you'd like to sell all your available shares, check the "Select All Available" box. 

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The box on "Select All Available" is checked. The number of shares available and sell quantity change to matching numbers.

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It's important to note that selling your ESPP shares typically has tax implications. Those tax implications vary by country. So we always encourage you to consult with your tax advisor first.

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An alert notification appears that says "Selling your ESPP shares typically has tax implications."

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In addition, be sure you're following your company policies on transactions, including open trading windows and blackout periods.

You can choose to place a market order or a limit order. 

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Screen zooms to bottom-left corner. The drop-down menu under the title "Order Type" is highlighted.

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Here's what that means: A market order will execute at the price of the stock when the order is received.

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The category "Market" is highlighted from the drop-down menu.

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A limit order specifies the minimum price the stock will be sold for. The stock price has to meet that price for your order to be executed.

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The category "Limit Order" is highlighted from the drop-down menu.

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If you're placing a limit order, select the timing of your order—Day Only or Good Until Canceled.

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The "Limit Price" field is filled in with the sample number "$15.00." Then the "Timing" field is highlighted. "Day Only" and "Good Until Canceled" are highlighted from the drop-down menu.

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Good Until Canceled orders stay in the system for 60 calendar days. After 60 days, if the order hasn’t executed, it expires. It’s up to you to cancel the order if your company trading window closes during this time, so keep an eye on it.

Once you've entered all the details for your stock sale, click the green "Review Order" button.

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The "Review Order" button is highlighted.

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Now you'll verify your order. Confirm the instructions you entered, review order messages, and make any changes you need. 

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The second step titled "2. Verify Order" under "All-in-One" from the navigation menu is highlighted. 

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To edit your order, click the "Change" button. 

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The screen scrolls down and the "Change" button is highlighted.

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If everything looks good, click the "Place Order" button.

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The "Place Order" button is highlighted.

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You'll get a confirmation number when your order has been placed. 

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The third step titled "3. Order Received" under "All-in-One" from the navigation menu is highlighted. The screen changes to reveal a confirmation of the sample trade order that was placed.

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Your proceeds will transfer to your linked brokerage account. You can change the transfer method by selecting Transfer Proceeds.

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The "Transfer Proceeds" button is highlighted.

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To check the progress of your order, select the "Order Status" screen.

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The "Order Status" button is highlighted.

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Your order will appear here. If the order has filled, it will say "Closed – Awaiting Settlement."

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The screen changes to reveal information under the "All Orders" tab of "Equity Award Center." The sample trade order that was placed in the previous screen appears here and labeled “OPEN.”

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Otherwise, it will show "Open" until it fills.

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The word "OPEN" is highlighted.

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Settlement happens within two trading days, and cash from the sale will be available on settlement.

To change or cancel your order, use the drop-down menu on the right.  

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A drop-down arrow under "Action" is highlighted.

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And that's how you sell your ESPP shares.

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Happy selling.
For assistance call 1-800-654-2593.

Announcer [offscreen]:
We're betting you have plans for this money. If you have any questions about how to make those plans happen, give us a call. It's what we're here for. 

Schwab brand audio clip.

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Charles Schwab
Own your tomorrow.

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BROKERAGE PRODUCTS: NOT FDIC-INSURED • NO BANK GUARANTEE • MAY LOSE VALUE

This information is not intended to be a substitute for specific individualized tax, legal, or investment planning advice. Where specific advice is necessary or appropriate, Schwab recommends consultation with a qualified tax advisor, CPA, financial planner, or investment manager.
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Schwab Stock Plan Services provides equity compensation plan services and other financial services to corporations and employees through Charles Schwab & Co., Inc. ("Schwab"). Schwab, a registered broker-dealer, offers brokerage and custody services to its customers.
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CC2738579 (0919-9WNS) (09/19)