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Technology Stocks : Lucent Technologies (LU) -- Ignore unavailable to you. Want to Upgrade?

To: Charles Tutt who wrote (18585)	8/14/2001 6:08:07 PM
From: Marc Hyman	Respond to of 21876

Doesn't paying for unvested stock defeat the purpose of vesting rules? You can exercise options before they are vested. The stock is then held in escrow until vested. Some do this to start the timer going for long term capital gains. If that was done (and this is just a guess) the company may be buying back stock that was purchased but not yet vested. I'd also guess that the amount paid would be the original strike price, i.e. no-one really made (or lost) any money (other than the interest that LU would have made). Again, that is just a guess. // marc