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Politics : Formerly About Advanced Micro Devices

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To: Ali Chen who wrote (67347)8/2/1999 2:36:00 PM
From: Windsock  Read Replies (1) of 1574126
 
Ali - Re:" Why would C.Barrett cashed $59M out of Intel stock
if company prospects are so bright?"

If Barrett doesn't exercise his options before they expiration date, then the profit from the increase in the stock price since the grant will be lost. The profit is a huge number. See the Intel shareholders report for detailed analysis

If he exercises, then he will owe AMT on the difference between the exercise price and the market price at grant.

So the solution is to exercise all the options and sell some of the stock to pay the taxes.
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