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To: Dave who wrote (47533)1/30/2001 1:09:51 PM
From: Wyätt Gwyön  Read Replies (2) | Respond to of 77400
 
Dave,

I have never had employee stock options, so I don't know the details of how it works. But stock options have a strike price, that price must be paid to somebody. I assume the way it works is that the employee pays the strike price to the company, and then the company issues the stock out of treasury stock.



To: Dave who wrote (47533)1/30/2001 1:48:56 PM
From: RetiredNow  Respond to of 77400
 
Dave, that is incorrect. Most stock options work this way. You get a strike price of say $100. Then when you sell, you get the difference between the market price of the stock at the time of the sale minus your strike. So if the stock was at $200 when you sold, you get $100 ($200-$100) times the number of options you sold. Then you get to pay taxes. Most companies also deduct taxes from the proceeds prior to paying you.


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