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Technology Stocks : Advanced Micro Devices - Moderated (AMD)
AMD 231.83+1.7%Jan 16 9:30 AM EST

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To: niceguy767 who wrote (105680)11/13/2003 8:48:33 AM
From: TechieGuy-altRead Replies (1) of 275872
 
Gee, the least they could've done was waited a few days more and realised quite a bit more sale proceeds!

Don't forget that once options are excersised taxes are locked in and due on the paper profits in that year.

If the stock declines after that, the original taxes are still due. Most smart folks make sure that they sell enough to cover the taxes due.

A log of folks were wiped out in the boom era when they exercised options and held on with exactly this belief and the stock took a nose dive later.

A stock can decline for a variety of reasons- as Sept. 11th demonstrated. Why take a risk in the 100K range where taxes are concerned (specially if more options may be available in the future).

TG
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