Silicon Investor (SI) -- The First Internet Community

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 : Advanced Micro Devices - Moderated (AMD) -- Ignore unavailable to you. Want to Upgrade?

To: andreas_wonisch who wrote (41033)	5/24/2001 9:44:39 AM
From: mfgrep	Read Replies (1) \| Respond to of 275872

I am still short term....I hate to sell and suffer the taxes! I'm still recovering from April 15. jason

To: andreas_wonisch who wrote (41033)	5/24/2001 11:39:46 AM
From: Win Smith	Respond to of 275872

Andreas, I think there's a real problem with American tax law and options. If you get, say, 1millon shares of options at $10 a share, and the stock is selling at $30 when the option is exercised, you own taxes on $20 million or something like that, regardless of where the stock goes afterward. Plus, you got to come up with the $10million to buy the stock. If you don't sell enough right away to cover the purchase price and the tax, you've got a cash flow problem. If the stock declines in the dot - com manner and you haven't cashed in enough to cover taxes, you can easily go deep in the hole. It's a mess. There's also some strange accounting rules that make it advantageous for companies to pay options instead of cash. Advantageous for the quarterly report, anyway, as near as I can tell it's not very advantageous to shareholders.