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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 73.61-1.5%1:54 PM EST

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To: Lizzie Tudor who wrote (62930)2/5/2003 3:23:34 PM
From: paul_philp  Read Replies (1) of 77400
 

I think expensing is double counting and dilution is really the only result of options but not being a financial person I might be missing something.


The counter to the 'it's all in the dilution' argument is the opportunity cost argument. An option granted could (theoretically) be offered to the public for cash, this is a real opportunity cost and dilution doesn't take it into account. It is this opportunity cost that I believe should be counted as the exense of options.

Paul
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