Anavex Life Sciences Corp (AVXL)

[BIOChecker4]

Wrong, as usual. Options are not sold to anybody. They are awarded at no initial cost to the options holder. Option are a right to purchase shares of a stock at a specific price (the price of a share on the day of the options award) over a pre-specified period of time. Options typically vest over three years, with one third of the total vesting each year. But this can vary. When options are exercised, the options holder purchases the underlying shares of stock at the original price and then typically sells the shares for a profit in a cashless transaction. (If the stock price is below the original price, then the options expire worthless.) Any gains from the sale of the underlying shares is treated as ordinary income for tax purposes.