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Technology Stocks : Wind River going up, up, up! -- Ignore unavailable to you. Want to Upgrade?

To: Don Lloyd who wrote (7197)	2/1/2000 10:53:00 PM
From: carolyn walder	Read Replies (2) \| Respond to of 10309

CMason - an elaboration of your analysis ... If the options were non-qualified, it would make more sense to exercise early and pay ordinary income tax (likely 39.6% for execs) on the difference between the strike and the CURRENT price than in several years when the price is likely to be significantly higher (of course unless you expect the stock price to remain stagnant and/or your marginal tax rate were to drop significantly). On the other hand, if you excercised now and held the stock you wouldn't pay (additional) tax until you sold and then it would be only 18% (if held 5 years after 2001 I believe) - unless of course the LT cap gains rate were to drop (to nothing?) and you would end up paying far less in the end [This analysis does not factor in the time value of money...] another thing - I do not think that the Republicans are short-sighted enough to repeal the LT cap gains rate at once - it would most likely be phased in - why? can you imagine the thrashing the market (consumer confidence/disposable income) would take if suddenly everyone (including funds) could sell their MSFT/CSCO/DELL/INTC/AOL (other long term holds) etc. without tax consequences?? I shudder at the thought... Carolyn