Replies to post #14633 on Hyperdynamics Corp (HDYNQ)

[inout]

Taxes are the issue with stock vs options. HDY directors could issue options with all reward and no risk however, once the options are exercised, the increase in value is taxed as a capital gain. If options are issued, then exercised at a later date, the difference in the stock price at the time of issue and time of exercise is taxed as ordinary income. Unless our socialist president has his way, and eliminates lower tax status for capital gains, it makes much more sense to purchase shares on the open market than to issue options if there is an anticipated large upside. The difference in tax ramifications could be huge.