Federal Budget Deficit

[Chuck52]

There's hope for the universe!

Now, if someone could just tell me how to pick the winning lottery numbers.

Chuck

 

[knucklehead]

Sure, Chuck - I do it all the time. Simply insert your hand into your pocket, establish a firm grip on your wallet, and struggle to maintain it while walking by the ticket selling agent, or machine. Works every time, and I always win.

 

[Gary_in_Indiana]

It sounds like you've got it. I hope PitBull does, too. /w3tcompact/icons/smile.gif

 

[Wingnut]

Mark,

why struggle? When you figure that the government keeps half, and then taxes your winnings ... you're not winning ... so keeping that in mind means never having to say "$5 on the Big Game, please".

 

[PitbullMidwest]

<font color=blue>It sounds like you've got it. I hope PitBull does, too. </font color=blue>

Not sure I do. I'm granted stock options, vesting in 1/3 increments over a 3 year period, expiring in 10 years. The strike price was determined at the grant date and the first vesting is one year from that date.

On my end of the deal they are valueless until I exercise the option, I can't spend them, use them as collateral for a loan or give them away as a charitable gift for tax credit. They only have value IF I sell them. So to me they are worth zilch, notta, nothing until that future event.

On the company's end, well, I don't even pretent to understand corporate finances.

I'm just some poor manager who was given options instead of a decent raise. /w3tcompact/icons/smile.gif BTW, my $56 and $36 options are worth $25.83 today!!

Of course our CEO had a strike price of $7 when he sold $1.2M worth of options last fall.

 

[MDNick]

Through out all this, I understand one thing. The stock market went down the crapper. It's a risky investment. I'm not increasing my contribution to the trift savings plan, i'm building a garage. Real estate is always a good investment./w3tcompact/icons/laugh.gif

 

[Gary_in_Indiana]

<font color=blue>"they are valueless until I exercise the option"</font color=blue>

That's not true. If the options are at a price below the current market price on the date of their issue (which, of course, is typically the case) and can be exercised at that time the difference between those two numbers is it's value.

If you choose to or not to exercise them is totally irrelavent. What happens to the stock value after that day is irrelavant. What is relavent is the value they have on the date of issue or first date you could exercise them.

If, in your case, you're not allowed to exercise the option for a year, then the value of the option as well as the expense to the company would be the difference between the option price and the market value on the first day on which you would be eligible to exercise the option.