Backdating to Mobile sexchart

and dozens of lesser-known technology firms were implicated in the scandal. .) Read on to find out how the scandal emerged, what brought it to and end and what you can learn from it now.Options Backdating The essence of the options backdating scandal can be summarized simply as executives falsifying documents in order to earn more money by deceiving regulators, shareholders and the Internal Revenue Service (IRS).Therefore, if executives backdate the excercise date of an option to a day (from at least a year ago) when the stock's price was at a low, they can potentially cut the amount of taxes that they pay by as much as 50%.For example, suppose that yesterday an executive backdated some options to when the underlying stock was .00 (the low for the last 1.5 years ).This way the executive would be granted options with a very low strike price, so that they are quite often already deep in the money.However, it appears that some executives also may have used a different method of backdating options to "cheat" the IRS.This is a way of repricing options to make them valuable or more valuable when the option "strike price" (the fixed price at which the owner of the option can purchase stock) is fixed to the stock price at the date the option was granted.

The tax code lowers the capital gains tax rate if the executive does not sell the granted shares for a year (to around 15%).stock options in the past have largely been closed by recent legislation, governmental agencies and the plaintiff's bar have dedicated significant resources in the past year to address past option backdating practices.Options backdating is the practice of altering the date a stock option was granted, to a usually earlier (but sometimes later) date at which the underlying stock price was lower.The practice of options backdating has landed many companies into the hotseat.The SEC constantly investigates possible instances where high level executives have been issued options at a past point in time (or backdating) where the underlying stock's price was at a low.the much different – and more financially beneficial – tax rules that apply when issuing “at the money” or "out of the money" stock options.

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