I just had to say Thank You, Don for your many lucid, well-reasoned posts to the boards. You are always concise, on topic and informative. So again, thanks.
However, I suspect that it may not do a lot of good most of the time. In discussions with friends, I've had the most success in describing option situations as sort of three-way transactions involving the company, the shareholders and the option holders/employees. (Simplified, I know.)
The main point is that the 'costs' are not necessarily borne by the same parties which receive the benefits. That's one of the biggest mental hurdles for some to get over. But it is kinda nice when you get that dawning, "Oh!" and the big eyes.
Yes, it is very simplified, but it has lead to dawning understanding, and intelligent follow-up questions being asked. It also segues nicely into theoretical exercises about tax benefits/stock-price effects when the stock price is rising...and when it falls. (Nasty <g> )
Again thanks,
S
PS. Re-lurking. I'll just GFM, now. (M = myself) <vbg> |
