Frequently Asked Questions
Here are the answers to frequently asked questions (FAQs). If you have additional questions that are not answered here, please send them to support@mindxpansion.com so that we can answer them and consider including them in this list. Thank you - we look forward to serving you further.
General FAQ
- Q: My company has given me options, but I'm not sure how much they are worth - does your service provide that information?
- A: Yes. You need to order Service 1 from us, which will calculate the fair market value for options of publicly traded companies.
- Q: I know what my options are worth now, but I would like to make projections to estimate what they will be worth in the future - can your service help with that?
- A: Yes. Order Service 2 to make projections and go through What-if analyses to estimate what your options should be worth if your company's stock hits certain price points in the future.
- Q: How much tax will I have to pay if I exercise my options now?
- A: Our Service 3 can calculate your tax for non-qualified stock options if you provide your marginal tax rate.
- Q: There are several different ways that I can exercise my options - which method should I use?
- A: Our Service 3 can show you gains that you will make, costs that you might incur, as well as taxes that you need to pay, so that you can pick the method that best fits your needs.
- Q: I like your services - can I place my order on-line?
- A: Yes, you can place your order on-line and you do not have to download anything. The output from the service will be emailed to you.
- Q: I would like to determine the value of my options and make projections on a regular basis - do I need to order a new service each time?
- A: No, we have monthly subscription packages at a low fee which allows you to use the services multiple times on a monthly basis.
- Q: Do you take credit cards?
- A: Yes, we take all major credit cards including Visa, Mastercard, American Express, and Discover Card. We also take orders using PayPal. Additionally, you can pay by check or money order.
- Q: I only provide my credit card number on secure servers. Is your server secure?
- A: Yes, all transactions through MindXpansion are handled by secure servers.
- Q: I have just received an offer from a company that I am considering for employment and they have offerred me a hiring incentive of options for 3,000 shares of company stock with an exercise price 30, but that is the same price as their stock is today. Are these options worth anything? If so, how much are they really worth? This information will help me to assess the full benefit of their offer.
- A: On first glance, you might not think they are worth much because your options are allowing you to buy the stock at 30 and you could buy the stock at 30 right now anyway. But the truth is that you would have to lay out a lot of money to buy 3,000 shares of stock at 30 right now - about $90,000.00 But with the options, you don't have to do that. So it really is worth something, and thanks to Nobel Prize winning formulas, you can find out the fair value of those options using our low priced Service 1.
- Q: My company has just given me a bonus in the form of stock options. How can I determine the monetary value of this bonus?
- A: Our Service 1 can calculate the fair value of the options you received as a bonus.
- Q: At the start of each year I calculate my net worth. I have a lot of options, but my company's stock has fallen and the stock price is actually below the exercise price of my options. Are these options worth anything that I should list in my net worth?
- A: Yes, they are still worth something and since you have a lot of them, it can still be a significant addition to your net worth. Service 1 can calculate their value for you, even though they may look like they aren't worth anything to you right now.
- Q: When I get the fair value of my options with your Service 1, how do I know that it is an accurate valuation?
- A: Our fair value calculations are based on Nobel Prize winning formulas that have been used for many years to value stock options. You can get more information on the Nobel Prize for option valuation and you can also review the assumptions of the option pricing model. If you were able to sell these options on an open market, "fair value" would be the price that would be fair to both the buyer and the seller.
- Q: I am concerned that the market may go down and my options will drop in value. I still have nine years before they expire and I expect to remain with my company throughout that time. Can your services provide any information to help me with my decision?
- A: Yes,all three of our services could help in this situation. Service 1 can tell you what your options are worth today. With nine years to expiration, they are probably worth more than you think. If you exercise your options now, you lose the benefit of that option premium. If you would like to do some projections to see what your options would be worth if your company's stock falls to a lower price, our Service 2 can provide that information. If you still wish to exercise for fear that the stock price will go down, you will probably want to do a same day sale to get the cash out of the positions rather than buy the shares or do a sell-to-cover. Our Service 3 can show you the tradeoffs with the three different methods.
- Q: Q: I am thinking about exercising some of my options and I know there are different ways to do this. How can your services help me?
- A: Our Service 3 is what you need to do tradeoff analyses on three different methods of exercising your stock options (NQSO - same day sale, buy shares, or sell-to-cover). It can determine the gain you should realize, how much tax you should owe, and any cash cost that might be required for each method so that you can select the method that is most advantageous for your particular circumstances.
- Q: I have decided it is time to exercise my options to provide cash to purchase a new car, but I am not sure how much money I will get and how much tax I will owe when I exercise my options. Can you help?
- A: Yes. In this case, you are probably interested in a same day sale and our Service 3 can determine the gain you should realize and how much tax you should owe due to exercising the options.
- Q: I am leaving my company so I need to exercise my employee options. But I believe the price of the stock will go up soon. How can I exercise my options to give me the most benefit and will that require a cash outlay?
- A: Our Service 3 can perform tradeoff analyses on methods of exercising to show you gains, taxes, cash outlays, and your new stock position after the exercise.
- Q: Does your Service 3 apply to Incentive Stock Options (ISO) or Non-Qualified Stock Options (NQSO) for tax purposes?
- A: Service 3 tax consequences apply to Non-Qualified Stock Options (NQSO). They do not qualify for any special tax consideration. For Incentive Stock Options (ISO), your gains are not taxed as ordinary income, however you are subject to the Alternative Minimum Tax (AMT). If you do have to pay AMT, you may be able to simultaneously exercise some Non-Qualified Stock Options without imposing additional taxes, up to the additional amount from your AMT. Our Service 3 can help you determine how many of the options you can exercise without additional tax penalty.
Find Out the Fair Value of Your Options Now and make Projections for the Future!
Use our employee stock option analysis services to find out the fair value of your options right now and make projections to see what they should be worth in the future. Pick the best time to exercise your options and find out how much money you will walk away with. Maximize Your Wealth!
Submit your option information to Value your options.
Submit your option information to make projections.
Submit your option information for liquidation analyses.
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