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To: Elmer who wrote (126753)2/6/2001 5:18:37 PM
From: willcousa  Read Replies (1) | Respond to of 186894
 
Corporate executives may be swimming in paper wealth but in my experience advising a lot of them they rarely have much cash flow. They can borrow to exercise options but that brings in to play the margin requirements. You may have noticed that Bernie Ebbers of worldcom did this and got a margin call. If they borrow they are also exposed to a lot of financial risk in a volitile stock. So many will sell existing shares at a market way above the option price in order to exercise options. This, IMHO, is a perfectly permissible reason to sell shares. I doubt they want to sell shares at these prices if they could avoid it.



To: Elmer who wrote (126753)2/6/2001 6:09:54 PM
From: maui_dude  Read Replies (2) | Respond to of 186894
 
<Edit> Just noticed that this has become a volatile topic. Not worth further discussion, IMHO.