How high will Microsoft fly? Message Board

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Technology Stocks : How high will Microsoft fly?

MSFT 478.35

-1.1%

9:54 AM EST

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To: Sonki who wrote (1678)	6/18/1997 9:11:00 PM
From: PMS Witch	of 74651

I think we're looking at two kinds of options. Those granted by MSFT to their employees and those traded on an exchange such as CBOE. I believe that MSFT sold the preferred stock to raise cash to cover the expense of granting employees options. Otherwise, the options can be excercised and the common shares become diluted. Exchange traded options have little to do with the company. They are usually traded among investors or speculators. In INTC's case, they sell put options to speculators as a way of raising cash. Like an individual doing the same thing, those short option positions may be excercised, but INTC seems ready to buy their stock if this happens. Hope this helps, PW.

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