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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: ed who wrote (9805)	11/29/1997 1:11:00 AM
From: hpeace	Respond to of 97611

ed, these are employee stock options and you will have to pay 25% or more IRS tax the second you exercise. Plus they have an option price. Like the stk might be worth $50 but your exercise price is $20. That is $30 profit and they withhold another $7.5 so you net $22.50 stk. Even if you go on 50% margin you can't buy the same amt. of stk. Almost all the tech compnaies give non-qualified options whcih means you pay IRS tax at option time..you can't even wait til next April to pay it. nceo.org it's best to just let them ride until expiration date.