SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Kirk © who wrote (16359)8/1/2002 7:34:39 PM
From: geode00  Read Replies (1) of 42834
 
Question here, when the employee exercises his options, he is considered to have income and owes taxes to the government. Who paid him that income?

Another question here, the company could have in theory sold those shares at the market price. The company isn't getting as much as it could realize so it's on the losing end of this proposition. It's, in theory, buying a happier employee (yeah, right) but it's still paying.

What if a company were to buy back all its shares (ok, it has a lot of money in the bank) and then distributes all those shares at a lower price than it bought them for to its employees. What happens to shareholders then? All the money in the bank that went out to buy those shares and then those shares are distributed to employees at a lower cost?

It's nonsensical as far as I can see it. There's a real cost here whether it's actual cash that's not realized or dilution. What am I missing in this argument?
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News