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Technology Stocks : Dell Technologies Inc.
DELL 138.98+4.0%Dec 4 3:59 PM EST

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To: Marie Smith who wrote (52773)7/21/1998 11:33:00 AM
From: Chuzzlewit  Read Replies (1) of 176387
 
Thank you for your answer Marie. Let me pose another related question to you:

I have been told by my accountant that for tax reasons employes receiving stock options as part of their compensation package should immediately sell the the stock upon exercise of the option. He said that failure to do so would trigger AMT. Could you explain how this works.

The reason that I asked this is two-fold:

First, insider selling is frequently cited as a negative among some investors, although I have argued that it is a consequence of the tax system and is therefore irrelevant.

Second, I have argued that if the tax system dissuades employes from obtaining and stock through incentive programs, then those incentive programs cannot work for long-term goals.

Any thoughts?

TTFN,
CTC

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