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The Incentive Stock Option

The tax advantage of an incentive stock option (ISO) is that there is no federal tax at the time the option is either granted or exercised (tax treatment at the state and local level may differ); however, the spread between the option price and market value at the time of exercise is a tax preference item and is added back for purposes of calculating the alternate minimum tax (AMT). If this is not a problem, then profits may be eligible for the more favorable capital gains treatment.

Other Stock Plans – Part 2

Restricted sale stock plans provide that the executive may purchase limited amounts of company stock at a discount from fair market value with after-tax dollars. In some cases the purchase is financed on an installment basis out of his dividend proceeds. If Mr. Key participated in such a plan, he might want to consider whether or not to include the value of the restricted stock in his income as he receives it. If it is included, subsequent dividends he is paid will receive the favorable 15 percent dividend tax rates. If he elects not to include the restricted stock in his income, he will pay ordinary income tax on them.

Other Stock Plans – Part 1

Stock options are not the only way in which an executive can tie his fortunes to those of the corporate stock. Many other arrangements are possible, some well known, others not.

Non-Qualified Stock Options

In this type, the option price can be set at any amount and the option can be exercised at any time, limited only by what the stockholders of the company will approve. In a rising market, an executive can make a substantial profit.

Financing Stock Options

An executive is often faced with the problem of finding the money to exercise his stock options. There are a number of alternatives available to him.

How to Make Money by Investing in Penny Stocks

Penny stocks are share offerings available to investors by companies that are too new or small to be offered with the dominant stock exchanges. These offer significant growth possibilities, and your initial purchase can be rather small, however you also stand the risk of the organization becoming shut down and you dropping your money.

How the Aggregator Bank Will Affect the Financial Markets

In its simplest form, the financial mess could simply be explained as a bunch of bad loans being made — loans to home buyers who couldn’t really repay the loans, banks taking on too much debt due to the securitization of loans, and government issuing more debt than its tax base can handle. The government response has been to try to bailout the bad debts through the usage of taxpayer funds and obligations.

Online Trading Has Its Origins in Digital Technology

The common factor in all products that can be sold online is the use of digital technology. We have known for decades that computers are brilliant at handling complicated arrangements of “0”s and “1”s at incredible speed. Now with ever-increasing processing power and bandwidth there is no area of life that cannot be represented, communicated and traded globally at the speed of light.

Here’s How to Make Money Trading Penny Stocks – An Exciting Way to Make Money With Stocks

Penny stocks are a lot of fun to invest in as they offer the potential for huge returns. You need to know what you’re doing though! Today we look at what you can do to pick out winning penny stocks.

What Beginners Should Know About Stock Market Investing

When first starting out in the stock market world, thing can seem a little bit intimidating and confusing. While there are many different aspects you must learn about regarding the stock market, it doesn’t all have to be difficult. When you are investing in the stock market you are essentially investing your future, especially if you are doing so as a means of living.