Comments on: Is it Wrong to Hedge Your Own Company’s Shares? http://www.darwinsfinance.com/hedge-company-shares/ Financial Evolution: Education, Adaptation, Achievement Mon, 06 Feb 2012 15:43:23 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: FastSwingshttp://www.darwinsfinance.com/hedge-company-shares/#comment-4624 FastSwings Thu, 04 Mar 2010 20:41:20 +0000 http://www.darwinsfinance.com/?p=1920#comment-4624 <strong>Stock Market Fast Swings from Fastswings.com - March 4, 2010...</strong> Welcome to the March 4, 2010 edition of Stock Market Fast Swings from Fastswings.com. This time around we have 15 articles including an interesting article on hedging your own company's shar...... Stock Market Fast Swings from Fastswings.com – March 4, 2010…

Welcome to the March 4, 2010 edition of Stock Market Fast Swings from Fastswings.com. This time around we have 15 articles including an interesting article on hedging your own company’s shar……

]]> By: Darwin's Financehttp://www.darwinsfinance.com/hedge-company-shares/#comment-4573 Darwin's Finance Tue, 02 Mar 2010 01:53:57 +0000 http://www.darwinsfinance.com/?p=1920#comment-4573 <a href="#comment-4564" rel="nofollow">@Mark Wolfinger</a>, I guess maybe the same reason it was taboo to even investigate Madoff. There are serious financial forces driving the regulatory procedures. @Mark Wolfinger, I guess maybe the same reason it was taboo to even investigate Madoff. There are serious financial forces driving the regulatory procedures.

]]> By: Important Reads – End of the Vancouver Olympics Edition | 20s Moneyhttp://www.darwinsfinance.com/hedge-company-shares/#comment-4571 Important Reads – End of the Vancouver Olympics Edition | 20s Money Mon, 01 Mar 2010 21:57:23 +0000 http://www.darwinsfinance.com/?p=1920#comment-4571 [...] Is it wrong to hedge your company’s shares? (Darwin) [...] [...] Is it wrong to hedge your company’s shares? (Darwin) [...]

]]> By: 20smoneyhttp://www.darwinsfinance.com/hedge-company-shares/#comment-4570 20smoney Mon, 01 Mar 2010 20:27:22 +0000 http://www.darwinsfinance.com/?p=1920#comment-4570 Very interesting article. I like it man! Very interesting article. I like it man!

]]> By: tim1198http://www.darwinsfinance.com/hedge-company-shares/#comment-4568 tim1198 Mon, 01 Mar 2010 16:26:12 +0000 http://www.darwinsfinance.com/?p=1920#comment-4568 Darwin: Of course it's not wrong for worker bees to hedge our shares. You're effectively buying an insurance policy. It's not different than insuring your car or home, and somebody asking "do you know something about your driving skills or house that causes you to insure it?" What's the difference? I say there's no difference. Tim Darwin:
Of course it’s not wrong for worker bees to hedge our shares. You’re effectively buying an insurance policy. It’s not different than insuring your car or home, and somebody asking “do you know something about your driving skills or house that causes you to insure it?” What’s the difference? I say there’s no difference.

Tim

]]> By: John Olagueshttp://www.darwinsfinance.com/hedge-company-shares/#comment-4567 John Olagues Mon, 01 Mar 2010 16:23:14 +0000 http://www.darwinsfinance.com/?p=1920#comment-4567 Very good article. Its very good in the sense that it discusses the merits of hedging ESOs as a risk reducing , value enhancing strategy. Hedging has favorable tax consequences that are even better than covered writing of stocks. I like using listed calls and puts because the OCC is in the middle and the employee has more flexibility to adjust and "tax harvest" with the listed call and puts. I agree that many executives use every means possible to extract the wealth from the investors and the employees. They don't backdate any more but they manipulate the stock lower prior to options grants and other methods which border on the illegal. John Summa and I have written a book , endorsed by some of the most noted experts which addresses many of the same topics. http://www.wiley.com/WileyCDA/WileyTitle/productCd-0470471921,descCd-description.html Keep up the good work. John Olagues Very good article. Its very good in the sense that it discusses the merits of hedging ESOs as a risk reducing , value enhancing strategy. Hedging has favorable tax consequences that are even better than covered writing of stocks.

I like using listed calls and puts because the OCC is in the middle and the employee has more flexibility to adjust and “tax harvest” with the listed call and puts.

I agree that many executives use every means possible to extract the wealth from the investors and the employees. They don’t backdate any more but they manipulate the stock lower prior to options grants and other methods which border on the illegal.

John Summa and I have written a book , endorsed by some of the most noted experts which addresses many of the same topics.

http://www.wiley.com/WileyCDA/WileyTitle/productCd-0470471921,descCd-description.html

Keep up the good work.

John Olagues

]]> By: Mark Wolfingerhttp://www.darwinsfinance.com/hedge-company-shares/#comment-4564 Mark Wolfinger Mon, 01 Mar 2010 13:27:49 +0000 http://www.darwinsfinance.com/?p=1920#comment-4564 Trading options is trading with inside information when the trader is a big exec in the company. Sure, it looks 'clean' because it's a hedge, but unless those insiders are hedged 100% of the time, the prima facie evidence is that they are using inside information to increase their returns. Why the FEDs don't jump on this information is beyond me. Trading options is trading with inside information when the trader is a big exec in the company.

Sure, it looks ‘clean’ because it’s a hedge, but unless those insiders are hedged 100% of the time, the prima facie evidence is that they are using inside information to increase their returns.

Why the FEDs don’t jump on this information is beyond me.

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