No, I get that
Posted on: November 9, 2017 at 15:45:25 CT
Mormad MU
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You're claiming that because the corporation will have less on the expense side (taxes), the corporate net income or cash will go up and that somehow, this will drive the market price of the stock. It may free up cash to pay dividends or they may simply plow that money back into the company and not pay dividends. It could be used for acquisitions or equipment or any number of things. Lower expenses can drive stock prices, but not sure there's a direct correlation between lower taxes and stock price.
On the exec side, I said the "spread" gets taxed. The option price is fixed. Anything above the option price at the time of exercise is taxed as ordinary income (non-qualified options) or as AMT preference (incentive stock options). As that spread increases, more personal tax is owed.