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To: sultan88
Flipping means that the stock options are exercised, and the stock is sold, in a simultaneous transaction. And the employee doesn't have to front the cash. In the example I quoted, of the NQSO for 100 shares of XYZX at an exercise price of $10, with the stock now selling for $30, the employee merely fills out a form saying that he want to exercise and then sell....The employee "buys" the stock for $1000, then it is sold for $3000..the employee nets $2000 gain, and the employer withholds the $400 in taxes, and the employee gets a check for $1600..
66 posted on 07/18/2002 6:18:12 AM PDT by ken5050
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To: ken5050
I always look forward to your reasoned and calm analysis of the financial world. I quote you often-your influence goes beyond this forum and that's a good thing!! Condolences on the profanation of your beautiful hamlet.
71 posted on 07/18/2002 11:54:53 AM PDT by Wild Irish Rogue
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To: ken5050
Thanks, Ken.
88 posted on 07/19/2002 8:48:53 PM PDT by sultan88
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