SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : IATV-ACTV Digital Convergence Software-HyperTV

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: StaggerLee who wrote (8168)12/3/1999 5:03:00 PM
From: Mike Fredericks  Read Replies (1) of 13157
 
Stagger-

Easiest way to say this: You're wrong.

Second Easiest way to say this:

SAR's: Suck capital out of the company, devaluing the company in real dollars, which then kills the stock price since stock price is a function of company value.

Stock Options: Do not change the real dollar valuation of the company. Only affects the value of the stock price because each share of stock is worth a smaller piece of the company.

Key difference is the value of the company changes with SAR's whereas it doesn't change with stock options. In both cases the value of the stock changes, but with the SAR's, it's worse.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext