(Total Views: 489)
Posted On: 05/04/2020 2:11:04 PM
Post# of 154089
Folks one more thing I need to mention and I am sure your guy are seasoned enough to understand that.
When you exercise your option and if the market price is lower than the price you exercise, you have a paper gain. And you have to pay your tax or our buddy IRS will come after you. The price you pay will go back to the company and you will need to come up with extra money to pay the tax. And if you dont have enough money, you will need to do the cashless sale. If you have the money, you can exercise and hold and start your time toward long term capital gain. Based on my experience with startup before, NP action IMO is leaving a lot of money on the table. We are lucky to have a CEO like this.
When you exercise your option and if the market price is lower than the price you exercise, you have a paper gain. And you have to pay your tax or our buddy IRS will come after you. The price you pay will go back to the company and you will need to come up with extra money to pay the tax. And if you dont have enough money, you will need to do the cashless sale. If you have the money, you can exercise and hold and start your time toward long term capital gain. Based on my experience with startup before, NP action IMO is leaving a lot of money on the table. We are lucky to have a CEO like this.
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