RE:RE:RE:RE:WHY would he sell shares at this price?haratekid wrote: bcsc wrote: He has options and warrants that allow him to buy replacement shares at significantly less.
But he is still selling undervalued stocks at a low price. Just because he has options and warrants, it doesn't mean he has to sell valuable stocks for dirt cheap. He could sell them later for a bigger profit.
Selling the shares provides the capital to exercise the options and pay the taxes that are triggered by exercising the options as well as the capital gains tax on the sold shares. (He's in a different tax bracket than you and I) As the price of the stock goes up so do the taxes, his cost to excersize his options is fixed.