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To: gzubeck who wrote (139279)	11/9/2004 10:08:30 PM
From: Biomaven	Respond to of 275872

Most (>95%) of option exercises are same-day-sales - in other words the stock is exercised and sold the same day. The tax laws make this pretty much the only sensible thing to do. Incentive stock options, where there was originally an argument for exercising and holding, have been vitiated by the alternative minimum tax and the reduction in the spread between cap gains and ordinary income. The standard for insider trading is possession of material, nonpublic information. Most companies have window periods and require that all senior execs trade only in these periods unless they set up a plan of sale ahead of time (a so-called 10b-5 Plan, which can also avoid virtually all insider-trading issues). Peter

To: gzubeck who wrote (139279)	11/9/2004 10:12:51 PM
From: Robohogs	Read Replies (1) \| Respond to of 275872

Very gray area - let's put it this way: The prosecutors will try to make a case if you sell as an insider and then right after bad news comes out and onus is on seller to prove not insider selling (not in law but in reality). You do not want a suit - kiss of death. Just plain reality. You will likely be ok in the circumstance you stated but who wants to take the chance? Jon

To: gzubeck who wrote (139279)	11/9/2004 11:26:26 PM
From: The Duke of URL©	Respond to of 275872

This is all from the lip so it may be wrong: "happens if you notice disturbing trends in the tech sector in general..." That is not insider information and hence not insider trading. To have a violation of 10-b(5) you need to be a person defined as an insider, basically a big fish and it includes people who are related to big fish in personal or business ways. AND you have to trade on insider information. Publicly available information is not insider information unless there is some secret connection to the company and then of course it is not "public" info, otherwise you can trade to your heart's content. Don't confuse insider information with restrictions on transfer of what is called promotors or founders stock. That type of stock cannot be unloaded to quickly. And don't confuse insider trading with reporting. All trades by insiders whether insider trading or not must be reported. Unless of course, you are the President. :))