I would think it works as if you were just 'given' some stock. If it appreciates from nothing to something, you'd pay capital gains on the total value of the st

I would think it works as if you were just 'given' some stock. If it appreciates from nothing to something, you'd pay capital gains on the total value of the stock- (total value - the amount you paid ($0)) = amount you get taxed on. At least, I would believe that's the spirit of the law.