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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: carl a. mehr who wrote (172742)	1/31/2003 12:39:23 AM
From: Dave Budde	Read Replies (1) \| Respond to of 186894

He held the option without exercising it for up to 10 years. It's true that he only actually owned the shares for one day. That's how options work. You have the option to buy at a specified price at the grant date and that option has a 10 year life. It typically becomes "vested" in increments of 25% per year after 1 year. Vested means one can exercise the option after the vesting period. They are designed to retain employees. If you resign before vesting, then you forfeit the option. Also if you don't exercise it within the 10 year timeframe, you also forfeit the option. This is what is driving the exercise and subsequent sale of these options. Many people exercise and sell the same day since a tax event occurs on exercise. They need the cash to pay the tax. That they sell all the stock is a personal decision based on their personal financial situation.