Am I eligible to receive ISOs while my company awaits re-listing in the NASDAQ?

February 14, 2000

Date:   Mon, 7 Feb 2000
From:   Vic


I’m a full time employee with a company which has been de-listed from NASDAQ. The company told me it has applied to be re-listed on NASDAQ.

I’d like to know if I’m eligible to receive ISOs from my company while it is awaiting for re-listing, and the possible restrictions that may prevent my company from issuing me ISOs.

Thanks in advance,


Date:   9 Feb 2000

Hello Vic,

A company does not have to have listed stock in order to issue ISOs.

The problem is the employee’s. The employee could have to pay an AMT for the excess of the fair market value of the stock over the option price, but be unable to sell the stock or borrow against it (no margin available) to get the cash to pay the tax.

Good luck!

Mike Gray

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

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