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Technology Stocks : Oracle Corporation (ORCL) -- Ignore unavailable to you. Want to Upgrade?

To: Benkea who wrote (10116)	3/14/1999 8:49:00 PM
From: MMW	Read Replies (2) \| Respond to of 19080

One of issue I would like to point out is the company can write off its employee exercise stock gain only if he or she sells the stock exercised within a year. If, however, employees hold on the stock after he or she exercised, the company does not allow to write off the gain the employee made. Why so many company employees want to sell the stock immediately? The reason can be different. One of the factor is IRS AMT rules. I don't want getting in too detail of it. Just in summary, the person has to pay AMT taxes on the stock gain at time he or she exercise the option. I think the problem is much more convoluted and it requires a much broad understanding. Cheers! Mike