Re: 1,000,000 Shares

Welcome To the WIN!!! St. Elias Mines HUB On AGORACOM

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dilengoose

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Re: 1,000,000 Shares

in response to

Re: 1,000,000 Shares

Rinky

posted on Sep 21, 2011 10:32PM

Yes Rinky,

This "sell" very likely could have been whats called a "Stock Swap", where a person trades company stock they already own for option stock.

Say your company stock sells for $50 a share, and you have an ISO to buy 5,000 additional shares for $25 each.

Instead of paying $125,000 in cash to exercise the option, you could exchange 2,500 shares (with a total market value of $125,000) you already own for the 5,000 new shares. This strategy has the additional benefit of limiting your concentration in company stock.