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Date:   Thu, 28 Sep 2006
From:   Daniel

Hi Mike,

When a company splits its stock, is the exercise price in the (pre-split) stock option plan automatically reduced to reflect the split?

Thanks very much for your time and consideration,

Daniel

Answer

Date:   Thu, 05 Oct 2006

Hello Daniel,

Yes.

Good luck!

Mike Gray

For more information about incentive stock options, request our free report, Incentive Stock Options - Executive Tax and Financial Planning Strategies.

For more information about non-qualified stock options, request our free report, Non-Qualified Stock Options - Executive Tax and Financial Planning Strategies.

IRS Circular 230 Disclosure: As required by U.S. Treasury Regulations, you are hereby advised that any written tax advice contained in this answer was not written or intended to be used (and cannot be used) by any taxpayer for the purpose of avoiding penalties that may be imposed under the U.S. Internal Revenue Code.