Denotes a same-day exercise and sale transaction, which an optionholder executes with the assistance of a broker. In a same-day exercise and sale, the exercise of the option and the sale of the underlying shares take place simultaneously, so the broker uses the proceeds of the sale to pay to the company the exercise price and any tax withholding and to the optionholder the net cash (minus any brokerage commission/fees). Some companies and brokers call this a cashless exercise
. See also the FAQ
about cashless exercises.