If the exercise price
is paid in the form of shares of employer stock, the employee's basis in the shares of stock treated as having been acquired in exchange for the shares previously held is equal to the basis of the employee in the previously acquired shares.
Opinion 25 requires expense recognition only if an option's exercise price
is less than the underlying stock's market price on the grant date or other measurement date.
The Company backdated certain other stock option grants by selecting a grant date and corresponding exercise price
that preceded the date that the Company actually determined to make such grants.
It could either pay the exercise price
and all applicable taxes to the donor's employer and then receive the shares, or it could arrange for a same-day sale with a broker who would deliver the exercise price
and taxes to the donor's employer.
Such options are less attractive to employers because they are more likely to result in recognition of an employee compensation expense since the option's exercise price
may be less than the stock's market price at the measurement date (an in the money option).
The sixth grant had an exercise price
that was higher than the closing price on the appropriate measurement date.
422(c)(2) provides that the excess of the amount realized on the sale over the exercise price
will be the basis of determining the ordinary income to the ISO holder and the deduction to the corporation.
If a person or group becomes an Acquiring Person, each Right will then entitle all other stockholders to purchase, by payment of the exercise price
, FFIC common stock (or a common stock equivalent) with a value of twice the exercise price
tendered their existing warrants to purchase an aggregate of 62,695 shares of common stock at an exercise price
Each Right will entitle shareholders to buy one one-hundredth of a share of a new series of junior participating preferred stock at an exercise price
of $40 upon the occurrence of certain events.
Under certain circumstances, each Right will entitle stockholders to buy one one-thousandth of a share of newly created Series A Junior Participating Preferred Stock of the Company at an exercise price
On July 10, 1992, the Company had announced that the exercise price
of the Initial Warrants was being reduced from $7.