Confessions of a Financial Planning Junkie
An employee stock option is an agreement that allows for the purchase of a specified number of shares of company stock by an employee at a stated price and for a certain period of time. If the market value of the stock price appreciates above the stated exercise price (the price at which you can …
[Read more...] about An Introduction to Incentive and Non Qualified Stock Options
The choice to exercise your employee stock options can be a difficult one, regardless of whether you have incentive stock options or non-qualified stock options. Difficult because of the potential complexities of exercise and technical jargon required in the process. Other issues may be …
[Read more...] about 6 Strategies to Exercise Your Employee Stock Options
When it’s time to exercise your employer-provided stock options, you generally have one of two options: a cash exercise or a cashless exercise. You may choose a cash exercise in the hope of achieving preferential long-term capital gains treatment on further appreciation of the stock. In addition, …
[Read more...] about Exploring the Details of A Cash Exercise of Stock Options
When the time comes to exercise non-qualified stock options, the question of whether to perform a cash exercise or a cashless exercise is a common one. In many cases, option holders default into a cashless exercise—and for good reason. Among other things, a cashless exercise may be an easy option …
[Read more...] about The Math Behind a Cashless Exercise of Non-Qualified Stock Options
On the surface, the tax rules associated with non-qualified stock options are relatively straightforward. Upon receipt of non-qualified stock options, no taxes are due. Furthermore, non qualified stock options are not taxable until you exercise the shares. This “exercise control” allows the …
[Read more...] about Exploring Tax Rules for Non-Qualified Stock Options
