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Politics : Formerly About Advanced Micro Devices

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To: Burt Masnick who wrote (72867)9/23/1999 5:57:00 PM
From: Bill Jackson  Read Replies (1) of 1571464
 
Burt, If the employee has options at $1 and the SP is $100 and an employee has 1000 options. He gives Intel $1000 and gets 1000 shares and then sells them in the market. Intel gets $1000 and the employee gets $100,000, less his $1000= $99,000.
If intel buys those shares(from the general pool of shares on the market) They pay $100,000 and have received $1000 from the employee, for a net cost of $99,000.
The employee has been enriched by 99K and Intel deriched by 99K, shares outstanding are the same.
If the options are above market price then the employee would lose money and Intel be enriched...so he would not use his options, cheaper in the market.
Bill
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