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C
Cashless Exercise

A transaction in which an optionholder exercises a stock option and simultaneously sells some or all of the shares, with a portion of the sale proceeds delivered to the company by the broker to pay the exercise price and any tax withholding (for NQSOs). This is called "cashless" because you are not putting up any cash to exercise the options. Some companies and brokers call this a same-day sale. See also the FAQ about cashless exercises.

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