
Exercising Underwater Stock Options - Possibly Justifiable or Always an Illogical Decision?
A client recently asked me if it would ever make sense to exercise underwater stock options and if it could lower their AMT. Many companies have experienced downward revisions to their 409a valuations over the last year-and-a-half due to the shakeups in the tech sector, so I'm hoping this will help other people who have underwater stock options and are wondering the same thing.