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Technology Stocks : Ascend Communications (ASND) -- Ignore unavailable to you. Want to Upgrade?


To: The Phoenix who wrote (44881)4/19/1998 10:20:00 PM
From: Chuzzlewit  Read Replies (1) | Respond to of 61433
 
Gary, I guess I didn't make myself clear. Tech companies frequently issue options as part of employee compensation. These options are generally immediately exercised and the stock sold. Some bears often point to those sales as insider trading, and as evidence for negatives for the stock.

I have been under the impression that these sales are made in order to avoid alternative minimum tax (AMT), but I don't understand the hows and whys. Maybe I'm just dense.

Any help you can provide would be much appreciated.

CTC