Taxation When Exercising Stock Options?

Answer Stock options are derivative contracts that grant the holder the right, although not the obligation, to purchase or to sell a specified amount of an underlying equity security at a specified price ... Read More »

Top Q&A For: Taxation When Exercising Stock Options

Stock options in start-up company: tax implications of exercising and FMV?

Your W-2 should have reported the amount (ie: FMV - grant price) upon exercise. It is your company's responsbility to provide this information. I am wondering how your company's payroll department ... Read More »

When can stock options be exercised?

When stock options can be exercised depends on whether the options are American or European. American stock options may be exercised at any time on or before the expiration date. European options m... Read More »

When do stock options expire?

American stock options always expire on the third Friday of the expiration month printed on the option. The only exception occurs when that Friday would fall on a holiday. In this case, the stock w... Read More »

Do stock options granted to employees differ from equity options?

According to the Chicago Board Options Exchange, equity options typically represent the right to buy 100 shares of stock. Stock options for employees are similar, except that the number of stocks t... Read More »