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Technology Stocks : Intel Corporation (INTC)
INTC 46.47-4.5%3:59 PM EST
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To: Jules B. Garfunkel who wrote (3323)9/17/1996 12:30:00 AM
From: JAMES HARRIS   of 186894
 
Jules:
You apparently are mixing put and call type options, which are traded in the market, with employee stock options which are issued by the company and when exercised require the company to issue stock to the option holder. The latter options are the type contemplated by James Bowers' question and by my answer.

Further, employee stock options generally have a dilutive effect on the EPS. According to their annual 10K report, in Intel's calculation of EPS at 12/31/95, not all the shares covered by employee stock options and the warrants have been included in the calculation of EPS, only those "shares issuable from assumed exercise of options and warrants". The number of shares includeable in the calculation is dependent on the terms of the option or warrant and the market value of the common stock as of the valuation date. However, by 3/98 the all shares issuable for the warrants should finally be included and reflected in the EPS.

Also, some companies acquire their own shares in the open market and hold them as Treasury Stock pending issuance of stock upon the exercise of employee stock options and/or warrants.

I suggest you download the Annual10K and Quarterly 10Q reports through EDGAR so you can get a better understanding of what your investing in. Perhaps a mutual fund might be a safer place for your funds until you're up to speed.
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