Stock Option cashless exerciseA stock option cashless exercise is a way of using margin in order to exercise buying a stock using margin. Once you borrow money and buy the stock you immediately sell other shares in order to raise capital to pay off the borrowed money along with any taxes and commissions that you may have to pay as well. It works for the option holder because they do not need the immediate cash on hand in order to buy the stock. Most brokers are familiar with this proceeded and comfortable with it because they know they will get paid back very quickly usually within the same day and rarely above two days. Return from stock option cashless exercise to stock trading terminology |
