Equity swap with company insider
If a company executive holds a large concentration of company stock, they can enter an equity swap to pay the return on the stock in exchange for Libor.
Equity swaps forces a termination of the holding period on the stock. Hence, this transaction has no tax advantages.
What does terminating the holding period of the stock mean? Does this mean you have to pay capital gains tax on that stock position as if you sold it?
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