Joanna Glasner and Bruce Brumberg
Don't be discouraged by stock market volatility and underwater stock options. As the experts note, stock grants are tools for building wealth in the long term.
W.E.B. Bantling
Market declines rattle even the most experienced stock option veterans (and their advisors). If you are less than fully prepared to cope with the emotional toll caused by an uncertain market, heed these 10 topics.
Michael Beriss
Question the urge to exercise your options to pocket quick profits: exercising too early is a common and big mistake.
Alisa Baker
In Part 4 we consider the taxation of employee stock purchase plans (ESPPs) that are not qualified under Section 423, and the tax issues of down markets, death, and withholding.
Loren Rodgers
You feel let down by your stock options. Your company's stock price has dropped, leaving you with underwater options, and the cash flow from expected option riches has evaporated.
Dan Caplinger
Motley Fool
Though many stock options sink underwater during a market downturn, option grants usually have a 10-year term, giving them plenty of time to become valuable again as your company's stock price recovers.
Mark Bruno
Financial Week
Companies are considering ways to deal with underwater stock options, either by repricing them or by exchanging them for grants of restricted stock.
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Underwater stock options have an exercise price which is greater than the market price of the underlying stock. For example...
During 2008, the number of companies, and their employees, with underwater stock options substantially increased, especially after the historic drop of the stock markets in October 2008. A survey...
An options exchange is an alternative to repricing underwater stock options...
No. When your exercise price (e.g. $10) is higher than the...
Wishful thinking! Just as you are not taxed on the value of the options at grant, you may not write off any expired unexercised options, whether underwater or in the money...
This is wishful thinking, because these are two separate transactions. It does not make sense to...
Not in the way stock options can. Restricted stock is worth the full market value of the stock when it vests (or, with restricted stock units, when shares are delivered). It does not matter if...
Generally, the exercise price cannot be raised without your written consent...
Very few companies arrange a straight repricing of outstanding options. Companies concerned about widespread and deeply underwater options may offer an...
You recognize ordinary income for the full value of the cash payment. Any deferred portion of the cash sale proceeds is not taxable until...
According to a statement the company issued on December 11, 2003...
This depends on the provisions in your stock plan and the structure of the merger or acquisition. According to the flexibility for adjusting outstanding grants that your company's stock plan provides, the buyer can...
This depends on whether the ISOs are already vested. According to the final IRS regulations on ISOs...
An option-for-option exchange is not taxable. But when you exchange underwater options for restricted stock...
In a public company you would never exercise underwater stock options. In a private company...
When the net intrinsic value of the stock is zero, the attorney for the nonemployee-spouse has two ways to obtain...
When options are exercised, generally the estate or beneficiary is able to take an income tax deduction for the amount of estate taxes already paid by the estate. But when they are not exercised you cannot take the deduction against other income...
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