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However, given that taxes become due when options are exercised

Is this true for Incentive Stock Options as well as Non Qualified Stock options? I thought that if I exercised my ISO and then held the stock for over a year, I was only taxed at the capital gains rate. Whereas if I exercise an NSO any difference between the option price and the current market value is taxed as ordinary income. Can you speak to the difference between ISO's and NSO's? Additionally options are considered "at risk compensation", so just because employees are exercising their options it doesn't necessarily mean they don't have faith in the company, it might they don't want too much of there retirement based on the success of one stock. Is it not true that there are many reasons to sell and only one reason to buy? I am wary of jumping to conclusions based on someone's selling stock.
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