Intel Corporation (INTC) Message Board

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Technology Stocks : Intel Corporation (INTC)

INTC 50.59

+4.9%

Feb 6 9:30 AM EST

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To: jack c rains who wrote (5960)	12/4/1996 3:14:00 PM
From: Paul Engel	of 186894

Jack, Mark - Re:" insiders have sold their Intel stock in very large blocks around the same time..." There is a logical explanation to why this occurs. Intel, as most companies do, grants new stock options yearly to their "selected" employees. These grants are made at a focal review, which is generally done at the same time for all employees, each year. Thus, the stock options are granted at the same date, and they necessarily VEST on the same date (but the year of VESTING may not be the same). Hence, many options become exercisable on or about the same date of a given calendar year. Statistically speaking, the chances of more than one "insider" choosing to sell his exercisable options on or about the same date of any given year is quite good. Another important fact - any Intel INSIDER will have new options coming due yearly - that is how these options are used - as an incentive. Selling this year's options doesn't necessarily mean bailing out of Intel stock - the insiders generally have a "stream" of these options coming due each year. Sort of like a renewable "energy" source. Paul

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