Wealthfront Releases New Tool to Demystify Post-IPO Stock-Selling

By Sarah Lacy , written on February 6, 2012

From The News Desk

Wealthfront continues to fight the New York-based, suited-upĀ wealth management zombies with the thing Silicon Valley does best: Technology. The online financial company is making a big push to get the business of newly minted Valley millionaires.

Unlike the zombies, Wealthfront is taking the non-pushy sales route, seeking to demystify the liquidity process, not make it more complex. In response to a lot of questions about when you should start selling shares in your company, Wealthfront has released a tool that allows you to experiment with selling shares in past Valley IPOs.

It's not just the hot IPOs. The tool includes real historical results from two that soared, two that fell, two "U" shaped IPOs, two upside-down "U" shaped IPOs, and two that traded in up-and-down sine waves. Users can experiment with different scenarios for selling stock across each of the scenarios, seeing real historical results of what would happen.

The tool is embeddable. Pretend you're a mogul and check it out below:


Wealthfront's advice is to diversify your portfolio, no matter how bullish you are on your company, but to do it at a little bit each quarter. The simulator uses real data to demonstrate why. No matter how great your company's fundamentals are, you can't guarantee it's going to perform like Google in the markets.

Read more on Wealthfront's blog.