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PLCM » Topics » Nonqualified Stock Options and Stock Appreciation Rights

This excerpt taken from the PLCM DEF 14A filed Apr 23, 2009.

Nonqualified Stock Options and Stock Appreciation Rights

 

No taxable income is recognized when a nonqualified stock option or a stock appreciation right is granted to a participant. Upon exercise, the participant will recognize ordinary income in an amount equal to the excess of the fair market value of the shares on the exercise date over the exercise price. Any additional gain or loss recognized upon later disposition of the shares is capital gain or loss.

 

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