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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: Stock Farmer who wrote (64087)	5/18/2003 6:02:45 AM
From: rkral	Respond to of 77400

OT ... John, re "The employee is deemed to have taxable income at the time the restrictions lift (shares "vest"). Ordinary income. Amount of income is equal to the difference between the amount they have to pay for the shares and the market price." I share your POV. But to clarify, the market price is at the time of vesting. re "Depending on various plans this [edit: special election] can be an advantageous option to elect, although it can result in having considerable capital tied up either in taxes or in award premium." Isn't capital tied up in the "award premium" whether or not the special election is made? As you likely know, if the special election is made, the capital gains holding period begins at the award date. Otherwise, it is the vesting date. Regards, Ron P.S. Fidelity's web page about Restricted Stock (nonvested stock per SFAS 123) at personal.fidelity.com