DOCSLIB.ORG

Restricted Stock Units, and Performance Awards

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Restricted Stock Units, and Performance Awards Restricted Stock, Restricted Stock Units, and Performance Awards Stock Plan Services Filing taxes for your restricted stock, restricted stock units, or performance awards There are two moments when your equity award can be taxed — when your award vests and when you sell the stock. When your award vests, you may have taxable ordinary income to report on your tax return. When you sell your stock, you may have capital gains or losses to report. This guide will help you understand which documents are needed and how they’re used when you, or your tax advisor, file your taxes. Restricted Stock, Restricted Stock Units, and Performance Awards Gather the following documents In order to accurately file your taxes, there are several documents and forms you may need. Some will be provided by your employer and others will come from Fidelity or the IRS. Below is a list of potentially important documents and where to get them. Make sure you have all of the applicable forms prior to filing your taxes. Log in to Fidelity.com/taxforms to see what forms you’ll receive and when you’ll get them. Form Why it’s needed Where to find it Form W-2 (or 1099-NEC Your W-2 (or 1099-NEC) includes This form is provided by if you are a nonemployee) the value of your award and the taxes your employer. that have been withheld. Form 1099-B This IRS form has details about your Available online at stock sale and helps you calculate Fidelity.com/taxforms and also any capital gain/loss. mailed to you. You can find out when you’ll receive them online. 2020 Supplemental Information The Supplemental Information form, created by Fidelity, may contain infor- mation not reported on your 1099-B due to IRS regulations. IRS Form 8949 These IRS forms are used to report Available online at www.irs.gov,* taxes on equity award(s). by calling 800.TAX.FORM IRS Schedule D and Form 1040 (800.829.3676), or by visiting your local IRS office. HOW THESE DOCUMENTS WORK TOGETHER Form 1099-B Form 8949 Schedule D Form 1040 OMB No. 1545-0074 SCHEDULE D OMB No. 1545-0074 Department of the Treasury—Internal Revenue Service (99) Form Sales and Other Dispositions of Capital Assets (Form 1040) Capital Gains and Losses 8949 Form 1040 U.S. Individual Income Tax Return 2020 OMB No. 1545-0074 IRS Use Only—Do not write or staple in this space. ▶ Go to www.irs.gov/Form8949 for instructions and the latest information. 2020 ▶ Attach to Form 1040, 1040-SR, or 1040-NR. Department of the Treasury Attachment 2020 ▶ ▶ Filing Status Single Married filing jointly Married filing separately (MFS) Head of household (HOH) Qualifying widow(er) (QW) Internal Revenue Service File with your Schedule D to list your transactions for lines 1b, 2, 3, 8b, 9, and 10 of Schedule D. Sequence No. 12A Department of the Treasury Go to www.irs.gov/ScheduleD for instructions and the latest information. Attachment Internal Revenue Service (99) ▶ Use Form 8949 to list your transactions for lines 1b, 2, 3, 8b, 9, and 10. Sequence No. 12 Check only If you checked the MFS box, enter the name of your spouse. If you checked the HOH or QW box, enter the child’s name if the qualifying Name(s) shown on return Social security number or taxpayer identification number one box. Name(s) shown on return Your social security number person is a child but not your dependent ▶ Before you check Box A, B, or C below, see whether you received any Form(s) 1099-B or substitute statement(s) from your broker. A substitute Your first name and middle initial Last name Your social security number statement will have the same information as Form 1099-B. Either will show whether your basis (usually your cost) was reported to the IRS by your Did you dispose of any investment(s) in a qualified opportunity fund during the tax year? Yes No broker and may even tell you which box to check. If “Yes,” attach Form 8949 and see its instructions for additional requirements for reporting your gain or loss. If joint return, spouse’s first name and middle initial Last name Spouse’s social security number Part I Short-Term. Transactions involving capital assets you held 1 year or less are generally short-term (see Part I Short-Term Capital Gains and Losses—Generally Assets Held One Year or Less (see instructions) instructions). For long-term transactions, see page 2. Home address (number and street). If you have a P.O. box, see instructions. Apt. no. Presidential Election Campaign Check here if you, or your Note: You may aggregate all short-term transactions reported on Form(s) 1099-B showing basis was See instructions for how to figure the amounts to enter on the (g) (h) Gain or (loss) spouse if filing jointly, want $3 reported to the IRS and for which no adjustments or codes are required. Enter the totals directly on lines below. (d) (e) Adjustments Subtract column (e) City, town, or post office. If you have a foreign address, also complete spaces below. State ZIP code Proceeds Cost to gain or loss from from column (d) and to go to this fund. Checking a Schedule D, line 1a; you aren’t required to report these transactions on Form 8949 (see instructions). This form may be easier to complete if you round off cents to (sales price) (or other basis) Form(s) 8949, Part I, combine the result box below will not change whole dollars. line 2, column (g) with column (g) You must check Box A, B, or C below. Check only one box. If more than one box applies for your short-term transactions, Foreign country name Foreign province/state/county Foreign postal code your tax or refund. You Spouse complete a separate Form 8949, page 1, for each applicable box. If you have more short-term transactions than will fit on this page 1a Totals for all short-term transactions reported on Form for one or more of the boxes, complete as many forms with the same box checked as you need. 1099-B for which basis was reported to the IRS and for At any time during 2020, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency? Yes No (A) Short-term transactions reported on Form(s) 1099-B showing basis was reported to the IRS (see Note above) which you have no adjustments (see instructions). Someone can claim: You as a dependent Your spouse as a dependent (B) Short-term transactions reported on Form(s) 1099-B showing basis wasn’t reported to the IRS However, if you choose to report all these transactions Standard Deduction Spouse itemizes on a separate return or you were a dual-status alien (C) Short-term transactions not reported to you on Form 1099-B on Form 8949, leave this line blank and go to line 1b . Adjustment, if any, to gain or loss. 1b Totals for all transactions reported on Form(s) 8949 with Age/Blindness You: Were born before January 2, 1956 Are blind Spouse: Was born before January 2, 1956 Is blind to 1 If you enter an amount in column (g), (e) (h) Box A checked . (2) Social security (3) Relationship (4) ✔ if qualifies for (see instructions): (c) (d) Cost or other basis. enter a code in column (f). Gain or (loss). Dependents (see instructions): (a) (b) Date sold or Proceeds See the Note below See the separate instructions. Subtract column (e) 2 Totals for all transactions reported on Form(s) 8949 with (1) First name Last name number to you Child tax credit Credit for other dependents Description of property Date acquired If more disposed of (sales price) and see Column (e) from column (d) and Box B checked . (Example: 100 sh. XYZ Co.) (Mo., day, yr.) (f) than four (Mo., day, yr.) (see instructions) in the separate (g) combine the result used for… used for… dependents, instructions Code(s) from Amount of with column (g) 3 Totals for all transactions reported on Form(s) 8949 with instructions adjustment see instructions Box C checked . and check 4 Short-term gain from Form 6252 and short-term gain or (loss) from Forms 4684, 6781, and 8824 . 4 here ▶ 5 Net short-term gain or (loss) from partnerships, S corporations, estates, and trusts from 1 Wages, salaries, tips, etc. Attach Form(s) W-2 . 1 Attach Schedule(s) K-1 . 5 2a Tax-exempt interest . 2a b Taxable interest . 2b Sch. B if 6 Short-term capital loss carryover. Enter the amount, if any, from line 8 of your Capital Loss Carryover 3a Qualified dividends . 3a 3b required. b Ordinary dividends . complete… Worksheet in the instructions . 6 ( ) 4a IRA distributions . 4a b Taxable amount . 4b 7 Net short-term capital gain or (loss). Combine lines 1a through 6 in column (h). If you have any long- 5a Pensions and annuities . 5a b Taxable amount . 5b term capital gains or losses, go to Part II below. Otherwise, go to Part III on the back . 7 Standard 6a Social security benefits . 6a b Taxable amount . 6b Deduction for— 7 Capital gain or (loss). Attach Schedule D if required. If not required, check here . ▶ 7 Part II Long-Term Capital Gains and Losses—Generally Assets Held More Than One Year (see instructions) • Single or Married filing 8 Other income from Schedule 1, line 9 . 8 separately, See instructions for how to figure the amounts to enter on the (g) (h) Gain or (loss) 9 Add lines 1, 2b, 3b, 4b, 5b, 6b, 7, and 8.
Load more

Recommended publications
  • Liquidity and Asset Prices Liquidity and Asset Prices
    Liquidity and Asset Prices Liquidity and Asset Prices Yakov Amihud Ira Leon Rennert Professor of Finance Stern School of Business New York University [email protected] Haim Mendelson The Kleiner, Perkins, Caufield & Byers Professor of Electronic Business and Commerce, and Management Graduate School of Business Stanford University Lasse Heje Pedersen Charles Schaefer Associate Professor of Finance Stern School of Business New York University Boston – Delft Foundations and Trends R in Finance Published, sold and distributed by: now Publishers Inc. PO Box 1024 Hanover, MA 02339 USA Tel. +1-781-985-4510 www.nowpublishers.com [email protected] Outside North America: now Publishers Inc. PO Box 179 2600 AD Delft The Netherlands Tel. +31-6-51115274 A Cataloging-in-Publication record is available from the Library of Congress The preferred citation for this publication is Y. Amihud, H. Mendelson, and L.H. Pedersen, Liquidity and Asset Prices, Foundation and Trends R in Finance, vol 1, no 4, pp 269–364, 2005 Printed on acid-free paper ISBN: 1-933019-12-3 c 2006 Y. Amihud, H. Mendelson, and L.H. Pedersen All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, mechanical, photocopying, recording or otherwise, without prior written permission of the publishers. Photocopying. In the USA: This journal is registered at the Copyright Clearance Cen- ter, Inc., 222 Rosewood Drive, Danvers, MA 01923. Authorization to photocopy items for internal or personal use, or the internal or personal use of specific clients, is granted by now Publishers Inc for users registered with the Copyright Clearance Center (CCC).
    [Show full text]
  • Executive Stock Options and Dividend Policy
    Executive Stock-Based Compensation and Firms’ Cash Payout: The Role of Shareholders’ Tax-Related Payout Preferences David Aboody Anderson Graduate School of Management University of California at Los Angeles Los Angeles, CA 90095 Tel: (310) 825-3393 [email protected] and Ron Kasznik Graduate School of Business Stanford University Stanford, CA 94305 Tel: (650) 725-9740 [email protected] March 2007 Under material revision David Aboody acknowledges the support of the Anderson School at UCLA. Ron Kasznik acknowledges the support of the Graduate School of Business, Stanford University. We appreciate the comments and suggestions by William Beaver, Jack Hughes, Brett Trueman, and workshop participants at the University of British Columbia, Harvard Business School, University of Minnesota, Ohio State University, and the Accounting Summer Camp at Stanford University. Executive Stock-Based Compensation and Firms’ Cash Payout: The Role of Shareholders’ Tax-Related Payout Preferences ABSTRACT This study investigates the extent to which the structure of executive stock-based compensation helps to align managers’ cash payout choices with shareholders’ tax-related payout preferences. Specifically, shareholders’ preferences between dividends, which are taxed as ordinary income, and stock repurchases, which can result in gains taxed as long-term capital gains, can depend on the relative magnitudes of their tax consequences. Similarly, to the extent that executives make payout choices that increase their compensation, stock options, which are not dividend-protected, can induce managers to favor repurchases over dividends as a form of payout. In contrast, compensation in the form of restricted stock, which is dividend-protected, is more likely to induce the use of dividends.
    [Show full text]
  • Concentrated Stock Positions
    EXPERIENCED AND INDEPENDENT ADVISORS WORKING PRIMARILY WITH ACCREDITED ENGINEERS, EXECUTIVES, AND ENTREPRENEURS 9237 Ward Parkway, Suite 320 | Kansas City, MO 64114 19 Essential Rules, Peter Vrooman, CFA®, CIMA®, CRPC® Jonathan Sarver, CPWA® Partner, Wealth Advisor Partner, Wealth Advisor Concepts, and Strategies Fundamental Choice Portfolio Manager Fundamental Choice Portfolio Manager 816-601-1152 816-601-1151 for Managing Concentrated [email protected] [email protected] Stock Positions and Stock Option Compensation MANAGING CONCENTRATED STOCK POSITIONS Rule #1 Buying a Hedged Put Option A put option affords an investor the right but not the obligation to sell a specified number of shares of the underlying stock, at a specified strike price, over a specified period of time, prior to expiration of the option. hedgedA put option is created when an investor owns a stock outright and pays a premium amount to purchases put options on the stock he or she owns to protect the stock price in the case of a decline (Knapp, 2001). Rule #2 Writing or Selling a Covered Call Option A call option provides an investor the right but not the obligation to buy a specified number of shares of the underlying stock, at a specified strike price, over a specified period of time, prior to expiration of the option. coveredA call option is created when an investor owns a stock outright and sells or writes call options on the underlying stock he or she owns, generating premium income, which is paid by the buyer of the call option. The covered call writer has the goal of modest appreciation and retention of the stock and income generation.
    [Show full text]
  • Restricted Stock & Restricted Stock Units
    Restricted Stock & Restricted Stock Units Bruce Brumberg, Editor-in-Chief myStockOptions.com [email protected] 617-734-1979 Copyright © myStockPlan.com, Inc. Please do not distribute or copy without permission. Restricted stock grant v. stock options • Historically, often part of senior executives’ comp, alongside options. • Popularity with institutional investors runs in cycles: restricted stock is often derided as having little motivational power (“pay for a pulse”). • Has been most useful in employee recruitment/retention when leaving behind valuable options or when the stock price is flat. • Big increases in grants at levels below senior management, although not as broadly granted as options. • Now the top alternative to stock options, whether granted instead of or in combination with options. • Accounting treatment becomes similar between types of equity compensation: “level playing field.” • Less dilution than with options because fewer granted. • Value in down and volatile markets: never underwater, gets dividends, but less upside compared with options. Bill Gates on the move from options to restricted stock at Microsoft: less risk for you than stock options • “When you win [with options], you win the lottery. And when you don't win, you still want it. The fact is that the variation in the value of an option is just too great.” • “I can imagine an employee going home at night and considering two wildly different possibilities with his compensation program. Either he can buy six summer homes or no summer homes. Either he can send his kids to college 50 times, or no times.” • “The variation is huge; much greater than most employees have an appetite for.
    [Show full text]
  • Restricted Stock: What You Need to Know for Executive Recruitment
    Bruce Brumberg, Editor-in-Chief [email protected] 617-734-1979 Copyright © 2013 myStockPlan.com Inc. Please do not distribute or copy without permission. Content, tools, and CE credits for companies, plan participants, and financial advisors Similar resources on nonqualified deferred comp for companies, plan participants, and financial advisors Key terms and definitions to know Trends in equity compensation Researching companies’ stock grants Key questions to ask clients, both to gather information and to sound knowledgeable Restricted stock/RSU grants; performance shares and units Taxes on restricted stock/performance shares Tax changes for 2013 Rule 10b5-1 trading plans and other features in stock grants to executives Stock options (NQSOs & ISOs) Stock appreciation rights Employee stock purchase plan (ESPP) Restricted stock Restricted stock units Performance shares or units Market Stock Units (MSOs) Restricted securities Long-term incentive plans (LTIPs) Stock options/SARs: Nonqualified stock options (NQSOs) remain the most common LTIP: Executives: 91% grant NQSOs & 56% grant ISOs Middle Management: 83% (NQS0) & 53% (ISO) Stock grants/awards (time-vested restricted stock or RSUs): 89% grant to executives; 85% to middle managers. Performance-based awards: 71% of companies now offer these awards, compared to 64% in the prior survey. 50% 47% 45% 45% 42% 43% 39% 40% 35% 33% 32% 27% 30% 27% 26% 25% 25% 21% 20% 16% 15% 13% 13% 14% 15% 13% 11% 10% 12% 11% 10% 7% 7% 5% 0% Stock Options/SARs Restricted Stock/RSUs Performance Awards Restricted stock/RSU grants: More common than stock options. 71% of companies grant these awards to employees, including managers.
    [Show full text]
  • The 21St Century Tontine Lookalike: Tax Aspects of Stock Protection Funds
    The 21st Century Tontine Lookalike: Tax Aspects of Stock Protection Funds By Thomas Boczar and Mark Leeds* Thomas Boczar and Mark Leeds explore certain federal income tax considerations applicable to stock protection funds. ontine Trusts, initially devised in the 17th century by Lorenzo de Tonti to help governments fund war efforts, are making a 21st century resurgence.1 A tontine is an investment plan based on the principles of risk pooling, Tdesigned to mitigate the risk of running out of income during one’s lifetime. A new stock hedging technique recently invented by Brian Yolles,2 called the Stock Protection Fund or Stock Protection Trust,3 is now available in the market that provides a modern twist on the traditional tontine trusts. A Protection Fund creates a low-cost strategy for hedging concentrated equity exposure. This article explores certain federal income tax considerations applicable to Protec- tion Funds. As described in detail below, Protection Fund transactions avoid a number of tax challenges that are posed by traditional hedging techniques. Many individual investors own appreciated positions in publicly-traded stock. In many cases, these stock positions comprise a significant portion of the holder’s net worth. Such investors face a challenging environment. The stock market is at an all-time high, interest rates are ratcheting up, and risks seem to be lurking everywhere around the globe. Investors also face considerable tax uncertainty. Since 2013, the tax cost of selling outright has skyrocketed, with the capital gains tax rate increasing almost 60%.4 However, with President Trump in office and a Republican-controlled Congress, the possibility of significant tax reform THOMAS BOCZAR is the President and is “in the air,” which might include a reduction in the capital gains tax rate, the Chief Executive Officer of Intelligent elimination of the estate tax, and the loss of the tax-free step-up in tax cost basis Edge Advisors.
    [Show full text]
  • Frequently Asked Questions Restricted Stock Awards and Restricted Stock Units
    Frequently Asked Questions Restricted Stock Awards and Restricted Stock Units Table of Contents Grant Date Status Change (LOA, termination) Vesting Date Selling or Transferring Shares Miscellaneous Grant Date Q1 What is a restricted stock award (RSA)? RSAs are an award of HP shares, which is subject to certain restrictions. When you receive an RSA you have the rights associated with owning HP common stock, including voting at the annual meeting of HP stockholders and receiving dividends; however, you do not have the right to sell, pledge or otherwise transfer the shares for a specified period of time (the vesting period). Once the vesting period expires and the restrictions lapse, you receive the shares of HP common stock and are free to hold, sell or transfer the shares. RSAs are granted at no cost to you, therefore the total value of the award on any given day is equal to the stock price on that day multiplied by the number of shares you received. The value of the award will increase and decrease, with the stock price, during the vesting period. Q2 What is the restriction or vesting period? The restriction, or vesting period, is the length of time before the restrictions lapse. For example, if you were granted 1,000 shares with 50% vesting after one year and 50% vesting after three years, then 500 shares would vest one year after the grant date and the remaining 500 shares would vest three years after the grant date. You will find the vesting period specific to your award in your Stock Notification and Award Agreement.
    [Show full text]
  • Accessing the U.S. Capital Markets
    ACCESSING THE U.S. CAPITAL MARKETS SECURITIES PRODUCTS An Introduction to United States Securities Laws This and other volumes of Accessing the U.S. Capital Markets have been prepared by Sidley Austin LLP for informational purposes only, and neither this volume nor any other volume constitutes legal advice. The information contained in this and other volumes is not intended to create, and receipt of this or any other volume does not constitute, a lawyer-client relationship. Readers should not act upon information in this or any other volume without seeking advice from professional advisers. Sidley Austin LLP, a Delaware limited liability partnership which operates at the firm’s offices other than Chicago, London, Hong Kong, Singapore and Sydney, is affiliated with other partnerships, including Sidley Austin LLP, an Illinois limited liability partnership (Chicago); Sidley Austin LLP, a separate Delaware limited liability partnership (London); Sidley Austin LLP, a separate Delaware limited liability partnership (Singapore); Sidley Austin, a New York general partnership (Hong Kong); Sidley Austin, a Delaware general partnership of registered foreign lawyers restricted to practicing foreign law (Sydney); and Sidley Austin Nishikawa Foreign Law Joint Enterprise (Tokyo). The affiliated partnerships are referred to herein collectively as “Sidley Austin LLP,” “Sidley Austin” or “Sidley.” This volume is available electronically at www.accessingsidley.com. If you would like additional printed copies of this volume, please contact one of our lawyers or our Marketing Department at 212-839-5300, e-mail: [email protected]. For further information regarding Sidley Austin, you may access our web site at www.sidley.com Our web site contains address, phone and e-mail information for our offices and attorneys.
    [Show full text]
  • New Approach to the Regulation of Trading Across Securities Markets, A
    NEW YORK UNIVERSITY LAW REVIEW VoLuME 71 DECEMBER 1996 - NUM-BER 6 A NEW APPROACH TO THE REGULATION OF TRADING ACROSS SECURITIES MARKETS YAKOV AMImHU* HAIM IVIENDELSON** In this Article, ProfessorsAmihud and Mendelson propose that a securities issuer should have the exclusive right to determine in which markets its securities will be traded, in contrast to the current regulatoryscheme under which markets may uni- laterally enable trading in securities without issuer consent Professors Amihud and Mendelson demonstrate that the tradingregime of a security affects its liquidity, and consequently its value, and that multinmarket tradingby some securitiesholders may produce negative externalities that harm securities holders collectively. Under the current scheme; some markets compete for orderflow from individuals by low- eringstandards, thereby creatingthe need for regulatoryoversight. A rule requiring issuer consent would protect the liquidity interests of issuers and of securitieshold- ers as a group. ProfessorsAmihud and Mendelson addresstie treatment of deriva- tive securities under their scheme, proposing a fair use test that would balance the issuer's liquidity interest against the public's right to use price information freely. The authors suggest that under their proposed rule, markets will compete to attract securities issuers by implementing and enforcing value-maximizing trading rules, thereby providing a market-based solution to market regulation. * Professor and Yamaichi Faculty Fellow, Stern School of Business, New York Univer- sity. B.S.S., 1969, Hebrew University, M.B.A., 1973, New York University, Ph.D., 1975. New York University. ** The James Irvin Miller Professor, Stanford Business School, Stanford University. B.Sc., 1972, Hebrew University, M.Sc., 1977, Tel Aviv University; Ph.D., 1979, Tel Aviv University.
    [Show full text]
  • Restricted Stock and Rsus: How Are They Taxed?
    Restricted stock and RSUs: How are they taxed? By Karen S. Yingst, CPA, MBA, MST Councilor, Buchanan & Mitchell, P.C. Over the last seven years, restricted stock and restricted stock units (RSUs) have grown in popularity as incentive compensation tools, while the use of stock options has declined. So it's important — for employers and employees alike — to understand their tax implications. A restricted stock award is a grant of common stock that's nontransferable and subject to forfeiture until it has vested. Typically, vesting requirements are tied to continued employment, achievement of pre-established performance goals or both. An RSU is a contractual right to receive stock (or its cash value) after the award has vested. Advantages over options For employers, stock options used to have a big advantage over other incentive compensation tools: They enabled companies to provide executives and other employees with valuable benefits without recording compensation expense on their financial statements. This advantage disappeared after the Financial Accounting Standards Board (FASB) amended its accounting standards for "share-based payments" in 2004, requiring companies to estimate the fair value of stock options on the grant date and report that value as compensation expense. Options remain an attractive benefit, offering significant upside potential for employees. But restricted stock and RSUs also have some advantages. For example, they generally retain value despite market volatility, whereas options can become worthless in a down market. Also, from the employer's perspective, restricted stock and RSUs generally involve fewer shares, so they cause less ownership dilution. Sizing up the tax benefits Restricted stock provides an attractive — but risky — opportunity for employees.
    [Show full text]
  • NBER WORKING PAPER SERIES FLIGHT to QUALITY, FLIGHT to LIQUIDITY, and the PRICING of RISK Dimitri Vayanos Working Paper 10327 Ht
    NBER WORKING PAPER SERIES FLIGHT TO QUALITY, FLIGHT TO LIQUIDITY, AND THE PRICING OF RISK Dimitri Vayanos Working Paper 10327 http://www.nber.org/papers/w10327 NATIONAL BUREAU OF ECONOMIC RESEARCH 1050 Massachusetts Avenue Cambridge, MA 02138 February 2004 I thank Viral Acharya, John Cox, Xavier Gabaix, Denis Gromb, Tim Johnson, Leonid Kogan, Pete Kyle, Jonathan Lewellen, Hong Liu, Stew Myers, Jun Pan, Anna Pavlova, Steve Ross, Jiang Wang, Wei Xiong, Jeff Zwiebel, seminar participants at Amsterdam, Athens, Caltech, LSE, LBS, Michigan, MIT, NYU, Princeton, Stockholm, Toulouse, UBC, UCLA, UT Austin, Washington University, and participants at the Econometric Society 2003 Summer Meetings, for helpful comments. I am especially grateful to Jeremy Stein for discussions that helped define this project, and for insightful comments in later stages. Jiro Kondo provided excellent research assistance. Financial support for this research came from the MIT/Merrill Lynch partnership. The views expressed herein are those of the authors and not necessarily those of the National Bureau of Economic Research. ©2004 by Dimitri Vayanos. All rights reserved. Short sections of text, not to exceed two paragraphs, may be quoted without explicit permission provided that full credit, including © notice, is given to the source. Flight to Quality, Flight to Liquidity, and the Pricing of Risk Dimitri Vayanos NBER Working Paper No. 10327 February 2004 JEL No. G1, G2 ABSTRACT We propose a dynamic equilibrium model of a multi-asset market with stochastic volatility and transaction costs. Our key assumption is that investors are fund managers, subject to withdrawals when fund performance falls below a threshold. This generates a preference for liquidity that is time- varying and increasing with volatility.
    [Show full text]
  • ALCATEL LUCENT (Exact Name of Registrant As Specified in Its Charter)
    SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________ Form 20-F [ ] REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR [X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2007 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR [ ] SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 1-11130 ALCATEL LUCENT (Exact name of Registrant as specified in its charter) N/A (Translation of Registrant’s name into English) Republic of France (Jurisdiction of incorporation or organization) 54, rue La Boétie 75008 Paris, France (Address of principal executive offices) Rémi Thomas Telephone Number 33 (1) 40 76 10 10 Facsimile Number 33 (1) 40 76 14 00 54, rue La Boétie 75008 Paris, France (Name, Telephone, E-mail and/or Facsimile Number and Address of Company Contact Person) Securities registered pursuant to Section 12(b) of the Act: Name of each exchange Title of each class on which registered American Depositary Shares, each representing one ordinary share, nominal value €2 per share* New York Stock Exchange ____________ * Listed, not for trading or quotation purposes, but only in connection with the registration of the American Depositary Shares pursuant to the requirements of the Securities and Exchange Commission. Securities registered or to be registered pursuant to Section 12(g) of the Act: None Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act: None Indicate the number of outstanding shares of each of the issuer’s classes of capital or common stock as of the close of the period covered by the annual report.
    [Show full text]