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Revision History For: Option Granting Practices and exploits

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Return to Option Granting Practices and exploits
 
Options grants to employees as a means to provide them with the benefits of additional upside of the company stock should help align the employee targets better with the interests of stockholders. So far the theory.

But, and particular in 2006 it comes to the attention of the investing public that listed companies often grant options exceptionally well timed which as some people suggest simply circumvents insider trading.

The market reacts negatively to such announcements so it seems that undiscovered but dubious option grants can be used to trade on disclosure. Lets try this.

So far a few companies have announced inquiries with option grants. Shareholders of high flying Rambus and Apple are victims of prominent companies...

According to the cockroach theory which I subscribe to, again and with the ascent of a stealth bear market there are many more companies with unresearched option grant problems. Let's find a few, but also lets look at the cases made public.