Compaq Message Board - Msg: 7166799

STOCKTALK

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.

Technology Stocks : Compaq

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: SC who wrote (42624)	1/8/1999 9:04:00 AM
From: rudedog	Read Replies (1) of 97611

shawn - Your description of what choices are available to CPQ executives is incorrect on several points. When exercising stock options, you have several options to sell of the expired shares: * all (if you think the stocks will not perform well), CPQ grants 'non-convertible' options. That means that executives have NO CHOICE about selling expiring options - they are 'use it or lose it'. They can not be converted to stock under any circumstances. If they don't sell the options just expire. * partial (if the stock has appreciated a lot, just sell enough to cover the cost now and cover tax before the tax time next year IF they are taxable type) See point above. This is not a choice for non-convertible options. * none at all (if you have cash and very bullish) Not right - if they don't exercise at expiration, the options (and all of the potential profit' just evaporate. Another point to consider is that insiders only have a few 'windows' when they can sell - these occur right after earnings announcement. So they also can not 'pick the high' - they pretty much have to take luck of the draw.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next