> unless you're liquidating immediately after you receive a grant then you're adding another variable into the mix of things that need to go right.
Why aren't you liquidating immediately after you receive a grant? Why would you choose to doubly leverage on your primary source of income, and, as you accurately point out, add another source of risk?
Liquidating is the rational action, but people are not always rational. Consider the two outcomes from selling stock early:
- The company tanks. You maybe retained some of the value of your stock, but you're still on a sinking ship.
- The company takes off. Thanks to loss aversion you feel like you lost money that is rightfully yours. And your idiot co-worker who held just turned up for work in a supercar.
Why aren't you liquidating immediately after you receive a grant? Why would you choose to doubly leverage on your primary source of income, and, as you accurately point out, add another source of risk?