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Consequences of Exercising Your Stock Options, CNNfn.

The America's Intelligence Wire

| February 12, 2004 | COPYRIGHT 2003 Financial Times Ltd. (Hide copyright information)Copyright

(From CNNfn News)

Byline: Ali Velshi

ALI VELSHI, CNNfn ANCHOR, YOUR MONEY: With the stock market trading near multiyear highs, you might want to exercise your stock options, but you should be aware of the potential consequences of doing so. Rob Johanson joins us from Los Angeles to talk about this. He`s an accountant and financial planner with NBS (ph) Financial Services. Rob, good to see you. Thank you for being with us. ROB JOHANSON, NBS FINANCIAL SERVICES: Hi, Ali, nice to see you again. VELSHI: Stock options were just really not an issue over the last couple of years, when markets weren`t doing anything. Most people`s options were under water. But options have been -- they really came into being in the late `90s. It wasn`t something that just happened to senior executives. This is something that people started offering across the board. I know at Time Warner , when we got ours, people sort of shelved them, didn`t really pay any attention to them. And now all of a sudden, you walk around the office, and everybody`s talking about what to do with their stock options. You know, it`s back …

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