Mart Resources Inc MAUXF

RE:SP Dropping

[bobby1231]

I thought 100% Wade would be selling and exercising all his options by wednesday's close. We will see

[oullins]

Bobby, If you exercise an option then you are the owner at the instant you give the money to the company.  Shares are coming from the company not from another shareholder so there is no 3 days settlement.  Think about it.  If you are an option holder and need to raise money to exercise, then you sell on Thursday and you are eligible to collect the dividend (owner of record

[billfox54]

If you sell shares, you can use the cash to buy other shares, but I believe you have to wait three days to withdraw the cash or use it to exercise options.  At least, it works that way in my rsp account.  I'm not sure about this.  Billfox

[tigersea]

time to move to another broker if you have to wait 3 days for cash  

[billfox54]

It only comes up if I've been fully invested, thus the cash isn't available until settlement.  It doesn't come up in my margin account because any cash withdrawl just reduces my margin.  Only a pure cash account is affected.  Billfox

[tigersea]

no, my cash account can sell today and buy tomorrow even if i dont put in any new cash. it is your broker's problem.

[watch22]

back to our settlement problem however - and the fact there's no free lunch!  If insiders sell on Thursday, they don't get cash (settlement) until the 23rd (end of day) in which case they can't exercise the options until the 24th.  Of course, one would expect they could get a margin loan or other form of credit to bridge the gap.

[mjh9413]

I said before it must be a no-brainer for insiders to exercise all the vested options (17MM plus) and accrue 15 or 20cents tax favored dividends in less than 6 months of this year, plus they need only sell about 6million at today's prices to equate to cost of all the options available to them. Presumably average costs of the holdings they are selling, assuming the costs exceed

[goldiehawn]

This means that Mart will have to come up with more money to pay in dividends correct?

[young_spanky]

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