Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : PSFT - Fiscal 1998 - Discussion for the next year -- Ignore unavailable to you. Want to Upgrade?

To: Raptor who wrote (2502)	10/4/1998 11:04:00 PM
From: Mama Bear	Respond to of 4509

Raptor, I can't help but call a net seller less bullish than someone who exorcises 1 million shares and keeps them. Of course Albert had the money to pay the taxes on those shares from his 1997 sales. The transaction report does not support the premise that these folks are just selling what is necessary to cover the tax bite on exorcised options. Barb

To: Raptor who wrote (2502)	10/5/1998 2:25:00 AM
From: AlienTech	Read Replies (1) \| Respond to of 4509

Stock options work slightly different in each company and depends on the type. But in the most common ones, A company asigns to you say 10000 shares when you start working for them at the then current stock price, say in JAN 97 PSFT was @ 16, so now the company has basically bought for you 10000 shares of PSFT @ 16. You can exercise these shares in time, usually 4 years, so each month you get 10000/48 (shares/months)= 208.3 shares a month. And if the current price of the stock is 50, You buy these shares from the company for $16 and you can sell them for $50, netting a profit of 34/share or $7800. You pay the taxes when you exercise them. So you dont have to sell buy you end up taking the hit for the taxes anyway. You dont have to exercise the options till the end of those 4 years if you already have a bundle in the bank. There are a lot of people making money this way and they really dont deserve it. Especally those in upper management who gets like millions of shares just because they are in upper management and has nothing to do with much of anything while the people doing all the real work gets stuck with the measely 1000 shares (like me :> who has options with a strike price higher than the current stock price, which means if I excercise them I pay the company for the previlage)