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ByloCellhi

08/25/07 7:07 PM

#21636 RE: SirFelix #21635

SF

An employee does not "buy" them

For example say an employee is granted shares at $10/share and then stock is at $15/share. The employee exercises the option at $15 no cash exchange then employee gets taxed on the $5 gain.

Note no cash transaction IF the option price is $.04 then that is good for the shareholders in this case.

Nornally option are LESS than the market value at time of issue.

Red Sox win again!