Gary Poster, with essential assists from Galyn Norwood, Phiroon Phihakendr, Jose Quijada, Pavandeep Kalra.
Many employees rush to cash in their stock options as soon as they can.
But that may not be the smartest thing to do. This is the most straightforward route. You give your employer the necessary money and get stock certificates in return. Some employers let you trade company stock you already own to acquire option stock. This is where you borrow from a stockbroker the money needed to exercise your option and, simultaneously, sell at least enough shares to cover your costs, including taxes and broker's commissions.