No. of Recommendations: 0

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.
Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.