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But here's the other side of that

Posted on: November 9, 2017 at 16:03:30 CT
Mormad MU
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stock options are almost always issued as 10 year term, with the exercise price set at FMV on the date of issuance. So, if stock prices are pushed higher, then stock option exercise prices are pushed higher. So, while aged stock options may see a short term surge in "spread" or profit available from previously issued options, it would most likely have a negative effect on options currently being issued or issued in the future. You'd have to see sustained growth in stock prices AFTER the option is issued. Otherwise, it'll remain at issuance price or underwater and of no personal economic benefit.
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Stock options and tax reform - Knucklehead MU - 11/9 14:45:43
     First the executives get taxed personally - Mormad MU - 11/9 15:33:30
          You are confusing executives personal tax with corporate - Knucklehead MU - 11/9 15:37:36
               No, I get that - Mormad MU - 11/9 15:45:25
                    He's telling us that all tax reduction will get stuffed into - 90Tiger MU - 11/9 15:59:59
                         Executive pockets are most likely - Mormad MU - 11/9 16:06:37
                              there will be perverse reactions if they go up or they go - 90Tiger MU - 11/9 16:09:56
                    Companies will not invest if they don't think investment wil - Knucklehead MU - 11/9 15:53:55
                         But here's the other side of that - Mormad MU - 11/9 16:03:30
                              yup... a "one-time" bump, as it were (nm) - 90Tiger MU - 11/9 16:06:22
     Given that dynamic, why do you think corporate tax rates - JeffB MU - 11/9 15:19:18
          If you give them everything they want, cash dries up - Knucklehead MU - 11/9 15:41:03
     why do corporate tax cuts automatically imply increased - 90Tiger MU - 11/9 15:14:27
     oh, yawn - FootballRefugee MU - 11/9 14:58:45
          I have owned stock for 30 years - Knucklehead MU - 11/9 15:06:25
               and none of that validates your premise that lower corporate - 90Tiger MU - 11/9 15:15:35
                    Disagree but you are entitled to your opinion - Knucklehead MU - 11/9 15:33:33
                         so if corporate taxes go up or down, all companies benefit - 90Tiger MU - 11/9 15:58:10
     Let's ban corporations--will that do it? - mu7176grad MU - 11/9 14:53:20




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