Can someone please tell me if it is possible to short sell against the box with restricted stock. If so, what would be the best shop to talk to. Thanks!
Not my area but I would doubt at the major wirehouses, maybe some of the smaller firms. Wouldn't it be defeating the whole purpose of restricted stock ? An alternative is to short a company in the same sector as the restricted stock , if some type of hedge is what you are looking for.
Talk to the investment bank that manages the plan, generally the bank will prefer to do an OTC collar that ends one day after the restriction ends. They will also generally lend 90% of the put strike if liquidity is needed. It can be very difficult to do any listed hedging because the restricted stock does not provide good collateral. It is also very common that the firm itself will prohibit a control person from shorting the company. If the position is small and doesn't merit the attention of an investment bank then there is generally little you can do without other capital. If it is a small position and the plan is run by a broker - talk to your HR department and see if they can tell what, if any, hedging is allowed