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Technology Stocks : All About Sun Microsystems -- Ignore unavailable to you. Want to Upgrade?

To: Mighty_Mezz who wrote (50706)	7/25/2002 4:52:28 PM
From: Charles Tutt	Read Replies (1) \| Respond to of 64865

Tee-hee. Insightful questions, methinks. On the first question -- those articles discussing folks at Microsoft being forced into bankruptcy because they exercised their options but didn't sell the underlying, so ended up with more tax liability than assets, would certainly imply so. On the second question -- ya would think so, wouldn't ya?! On the third question -- one can only hope. I've given up guessing. JMHO. Charles Tutt (SM)

To: Mighty_Mezz who wrote (50706)	7/26/2002 6:07:33 AM
From: JDN	Respond to of 64865

Dear Mighty: Again, it AINT THAT SIMPLE. There are DIFFERENT kinds of OPTIONS. Some taxable, some not. NORMALLY companies issue the NONTAXABLE ones which means they got certain parameters which if adopted means there is no tax liability to the recipient at the option grant OR at the option exercise, only when the acquired stock is SOLD. If they are NOT of the non taxable type THEN recipient picks up taxable income at grant of option and company gets similar tax deduction. JDN