The process of liquidating restricted stock units granted by Amazon involves converting these equity awards into cash. This action typically occurs after the shares have vested and are deposited into a brokerage account. The individual then has the option to sell these shares on the open market.
Understanding the mechanics of this process is crucial for financial planning. Successfully managing these transactions allows employees to realize the value of their compensation packages and integrate those proceeds into their overall financial strategy. The historical performance of the company’s stock often influences decisions related to the timing of these transactions, as individuals weigh potential capital gains against immediate liquidity needs.
