Exercising Incentive Stock Options by Exchanging Stock for Stock: A Means of Building Individual Wealth

Journal of Financial Service Professionals, Vol. 59, No. 2, pp. 55-59, March 2005

Posted: 23 Sep 2011

See all articles by Donald W. Wells

Donald W. Wells

University of Central Oklahoma

Susan Bize

University of Central Oklahoma

David Durr

Murray State University - College of Business

Date Written: March 1, 2005

Abstract

Anecdotal evidence suggests that the recent controversy surrounding the expensing of stock options appears likely to reduce the number of options granted. Therefore, it becomes increasingly important for grantees to manage the grants that they have received in order to maximize grantee wealth. A feature of incentive stock options (ISOs) allows them to be exercised through the exchange of currently owned shares, without initiating a taxable event. For certain grantees, this approach may be an attractive alternative in building wealth.

Keywords: stock options

JEL Classification: M52

Suggested Citation

Wells, Donald W. and Bize, Susan and Durr, David Wright, Exercising Incentive Stock Options by Exchanging Stock for Stock: A Means of Building Individual Wealth (March 1, 2005). Journal of Financial Service Professionals, Vol. 59, No. 2, pp. 55-59, March 2005, Available at SSRN: https://ssrn.com/abstract=1932755

Donald W. Wells

University of Central Oklahoma ( email )

100 North University Drive
Edmond, OK 73034
United States

Susan Bize

University of Central Oklahoma ( email )

100 North University Drive
Edmond, OK 73034
United States

David Wright Durr (Contact Author)

Murray State University - College of Business ( email )

351 Business Building
Murray, KY 42071-3314
United States

Do you have negative results from your research you’d like to share?

Paper statistics

Abstract Views
978
PlumX Metrics