Rambus (RMBS) - Eagle or Penguin Message Board

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Technology Stocks : Rambus (RMBS) - Eagle or Penguin

RMBS 94.65

-0.2%

11:22 AM EST

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To: MileHigh who wrote (12621)	1/8/1999 10:53:00 AM
From: blake_paterson	Read Replies (1) of 93625

Uncle, Mile and Thread: A different hypothesis: The options are considered compensation by the IRS. The spread between exercise and market priced is taxed at income rates. Any gains after that are taxed at capital gains (as long as he holds > 1 year). This strongly suggests that he 1. plans to hold for > 12 mos., and 2. thinks there is going to be significant further appreciation which he wishes to protect by taking the income "hit" in '98. JMO, BP

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