---
title: How does Grantd deal with vesting events and grants that expired or been sold?
description: Learn how Grantd tracks and manages the lifecycle of equity grants from active status through vesting, exercise, sale, or expiration.
---

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November 12, 2025

# How does Grantd deal with vesting events and grants that expired or been sold?

## Learn how Grantd tracks and manages the lifecycle of equity grants from active status through vesting, exercise, sale, or expiration.

### Understanding Grant Lifecycle

Equity grants move through various stages during their lifetime:

1. **Granted** - Initial award, unvested
2. **Vesting** - Shares/options become exercisable over time
3. **Vested** - Full ownership achieved
4. **Exercised** - Options converted to shares (if applicable)
5. **Sold** - Shares liquidated
6. **Expired** - Options lapse unused (if applicable)

Grantd tracks grants through each of these stages to maintain accurate portfolio analysis and historical records.

### Active vs. Inactive Status

#### Active Holdings

Active holdings include:

- **Unvested grants** - Future vesting events scheduled
- **Vested but unexercised options** - Available for exercise
- **Owned shares** - Shares held in portfolio
- **Partially vested grants** - Some vested, some unvested

These holdings:

- Appear in current portfolio analysis
- Factor into concentration calculations
- Drive tax projections and scenarios
- Generate alerts and notifications

#### Inactive Holdings

Holdings become inactive when:

- **Options expire unused** - Passed expiration date without exercise
- **Shares are fully sold** - Complete liquidation
- **Grants are forfeited** - Cancelled due to termination or other reasons

### How Vesting Events are Tracked

#### Scheduled Vesting

When you set up a grant with a vesting schedule:

- Grantd tracks all future vesting dates
- Multi-year projections account for scheduled vesting
- Vesting events appear in timeline visualizations
- Alerts can be set for upcoming vesting dates

#### Vesting Types Supported

**Linear Vesting**

- Even distribution over vesting period
- Example: 25% per year over 4 years

**Cliff + Linear**

- Initial cliff period followed by regular vesting
- Example: 1-year cliff, then monthly vesting for 3 years

**Custom Vesting**

- Irregular vesting schedules
- Performance-based vesting milestones
- Any unique vesting arrangement

#### As Vesting Occurs

When shares vest:

- **RSUs:** Automatically convert to owned shares
- **Options:** Become exercisable
- **Tax impact:** Triggered for RSUs, not for options
- **Portfolio updates:** Concentration and value recalculated

### Managing Exercised Options

#### When Options are Exercised

The grant record updates to reflect:

- Exercise date and price paid
- Number of shares acquired
- Tax basis established
- Remaining unexercised options (if partial exercise)

#### Tracking Post-Exercise Shares

After exercise, shares are tracked as:

- **Owned Shares** - Full tracking of acquisition details
- **Cost Basis** - For future capital gains calculations
- **Holding Period** - Short-term vs. long-term treatment
- **Current Value** - Market value updates

### Handling Sold Shares

#### Recording Sales

When shares are sold, you can record:

- **Sale Date** - When transaction occurred
- **Sale Price** - Price per share received
- **Number of Shares Sold** - Full or partial position
- **Tax Impact** - Capital gains/losses calculated

#### Partial vs. Complete Sales

**Partial Sales**

- Remaining shares stay active in portfolio
- Concentration updates based on reduced position
- Cost basis tracking for remaining shares

**Complete Sales**

- Position fully liquidated
- Historical record maintained
- Capital gains/losses recorded
- Removed from active portfolio analysis

### Expired Options

#### When Options Expire

Options that reach expiration without being exercised:

- **Out-of-the-Money Options** - No intrinsic value, expire worthless
- **In-the-Money Options** - Potential value lost if not exercised
- **Administrative Lapses** - Missed exercise deadlines

#### How Grantd Handles Expirations

**Before Expiration:**

- Expiration reminder alerts available
- Exercise priority scores may increase
- Dashboard notifications of approaching deadlines

**After Expiration:**

- Grant marked as expired
- Removed from active portfolio
- Historical record maintained
- No tax deduction for expired options (for employee)

### Historical Record Keeping

Grantd maintains records of:

- **Original grant details** - Date, quantity, strike price, vesting schedule
- **Vesting history** - When shares vested
- **Exercise transactions** - Dates, quantities, prices
- **Sale transactions** - Dates, quantities, proceeds
- **Expiration events** - Options that lapsed

This historical data supports:

- Multi-year tax planning and reporting
- Audit trail for financial advisors
- Understanding patterns in equity compensation decisions
- Long-term portfolio performance analysis

### Data Organization

#### Active Portfolio View

Your current portfolio displays:

- All unvested grants (with vesting schedules)
- All vested but unexercised options
- All owned shares (not yet sold)
- Current values and concentrations

#### Historical Transactions

Past events are organized by:

- Transaction type (vesting, exercise, sale, expiration)
- Date ranges
- Specific grants or holdings
- Tax year (for reporting purposes)

### Best Practices for Record Management

#### Regular Updates

Keep records current by:

- Recording exercises promptly after execution
- Updating sales as they occur
- Confirming vesting events happened as scheduled
- Noting any forfeited or cancelled grants

#### Documentation

Maintain supporting documentation:

- Grant agreements and summaries
- Exercise confirmations
- Brokerage statements showing sales
- Tax forms (W-2s, 1099-Bs)

#### Annual Review

Conduct yearly reviews to:

- Verify all vesting events recorded
- Confirm expired options properly marked
- Reconcile shares owned with brokerage statements
- Update any missed transactions

### Integration with Tax Calculations

Historical transaction data flows into:

- **Multi-year tax projections** - Past exercises inform future planning
- **Cost basis tracking** - Accurate capital gains calculations
- **Holding period determination** - Short-term vs. long-term treatment
- **AMT credit tracking** - Prior year AMT creates future credits

### Alerts for Critical Events

Set up alerts to avoid missing important deadlines:

**Vesting Reminders**

- Notification before shares vest
- Prepare for tax withholding (RSUs)
- Plan exercise strategy (options)

**Expiration Reminders**

- Warning before options expire
- Configurable advance notice (e.g., 30 days, 90 days)
- Ensure valuable options aren't accidentally forfeited

### Related Articles

- [How can I setup alerts and notifications?](https://support.grantdequity.com/how-can-i-setup-alerts-and-notifications?hsLang=en)
- [What type of alerts and monitoring does Grantd provide?](https://support.grantdequity.com/what-type-of-alerts-and-monitoring-does-grantd-provide?hsLang=en)
- [How do I add a grant?](https://support.grantdequity.com/how-do-i-add-a-grant-image-needed?hsLang=en)
- [How can I setup a vesting schedule?](https://support.grantdequity.com/how-can-i-setup-a-vesting-schedule?hsLang=en)
- [How Equity Compensation Events Impact Your Taxes](https://support.grantdequity.com/how-equity-compensation-events-impact-your-taxes?hsLang=en)

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