IP: Re: Tech Workers' Stock Options Turn Into Tax Nightmares:

[David Farber <dave () farber net>]

> To: farber () cis upenn edu
> Subject: Re: IP: Re: Tech Workers' Stock Options Turn Into Tax Nightmares:
> Date: Fri, 13 Apr 2001 17:25:58 -0400
> From: On request deleted
>
>
> [if you forward to IP, kindly keep anonymous, this has elements of one of
> those religious wars and I don't want to lose the next two weeks arguing...]
>
> Maybe I'm old fashioned but I react that these guys lost due to greed.
>
> They exercised their stock options, but chose to hold stock rather than
> sell, so they could reduce their taxes.  (I.e. they had a nice gain but
> wanted more and decided to risk their tax liability).  But then they forgot
> to watch the market price (or get a good broker to watch the market for them)
> and sell when the stock went down.  They bet on the bubble and lost.
> (Yes there are a few folks whose stock went into freefall so fast that
> in a matter of minutes it zipped past the point where they could sell and
> save themselves -- but my sense is not many).
>
> They knew the risks -- deciding to hold the stock rather than sell means
> they read the option grant rules so they knew that holding could save
> them taxes.



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