RE:Lets face itFrom CEO.CA: no worries, told ya it was for tax purposes, good for Arlene smart move- if you don't like it sell !!
Arlene sold for tax reasons. Anyone in the business understand that when you exercise options, the difference between the strike price of the options and current share price is taxed as income tax. So Arlene exercising 40k shares at $1 when the share price is $3.50 means she is taxed as follows: 40k shares times $2.50 ($3.50-1.00) so $100k of income for probably $40k of taxes which is due now. The advantage for her now is that if she sells those 40k shares at $20 per share, she will pay capital gains tax from $3.50 to $20. Very smart on her part.
hat's a nice post anonymous, very astute forward thinking. i guess she see's something she likes :)