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Politics : The Donkey's Inn -- Ignore unavailable to you. Want to Upgrade?

To: Mephisto who wrote (2022)	1/13/2002 2:04:08 AM
From: Patricia Trinchero	Read Replies (1) \| Respond to of 15516

I believe that the taxes are calculated on the price of the stock at the time that the options are exercised. When the stock price goes down below the exercised price then it can be disasterous. The employee owes taxes on the amount that the options were exercised at and even if he or she sells the stock, manytimes they do not have enough to pay the taxes because the price has dropped so low. Many people ended up in that position in the last year. The market has dropped so badly. THey owe taxes on a stock price of maybe 60 dollars a share but by the end of the year it is 10 dollars a share. Even if they sold all their shares they may not have enough to pay all the taxes...a sad situation. That is my understanding of the process.