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Cashless Stock Options

More companies are handing out stock options to a broader group of employees. There are three main ways to exercise options. You may pay cash; you may swap employer stock you already own; or you may borrow money while simultaneously selling enough shares to cover your costs. BB&T Scott & Stringfellow has a unique plan for you to exercise your options without a cash outlay on your part. We call it Cashless Stock Options.

Procedures for Exercising Stock Options
BB&T Scott & Stringfellow’s stock option program offers you the ability to exercise your options without liquidating other assets to pay the exercise price.

The following steps outline what is required to exercise your options.

  • Inform the appropriate person at your company that you want to exercise your stock options with financing from BB&T Scott & Stringfellow. Execute the exercise and sale form provided by your financial advisor. Upon receipt of the form, our Clearing division will contact your company to verify the options and review the procedures.   
  • Once we receive your signed form and contract with your corporation, BB&T Scott & Stringfellow will issue a check or send a wire on your behalf payable directly to your corporation for the required amount. Interest will be charged from the date of payment. If your intent is to hold the stock in a margin account, BB&T Scott & Stringfellow will lend up to 50 percent of the market value and charge interest at BB&T Scott & Stringfellow’s prevailing margin rates. In order to use the margin method for payment, you must open a margin account and your stock must be a margin-eligible security.