RE:RE:RE:RE:Bought some more heresnowshoedb wrote: The nature of stock options and the consequences of taxation compel the holder of the option to both exercise and sell their position of options on the same day. The reason they exercise the option is so that they can get the cash. Exercising the option, paying tax on the game and then being at risk for market fluctuations it's too much for the option holder to take. I've seen some very ugly scenarios when somebody has exercise their options, paid the tax and then watch their investment implode. In the end they were left holding the bag with a big tax burden
I think watching their investment implode is part of James' job as the CEO. His sale does not impart any confidence in the firm, which makes the little retail guy without institutional access to James question whether this property really has the scale to support a tier 1 asset. James needs to sell that position to somebody, and chances are, it's retail that buys it. I don't think it's OK for the stock to implode on a retail bag holder. I know that's not what you intended to say, but that is the result of his sale in the event of an implosion.