Barb -
[...hot dog stand...]
I want to offer you an option to buy a half interest in my franchise to publish serious, but off the wall, economic analogies on this thread. -g-
From Barrons -
"...'That old straight arrow Warren Buffett, who is one of the world's last value investors, is also one of the world's last critics of stock options. The true cost of compensation should be "brought out of the closet" and shown to shareholders at the time options are granted, he says.
"In effect, accounting principles offer management a choice: Pay employees in one form and count the cost, or pay them in another form and ignore the cost," Buffett wrote in his letter to shareholders last year. "If options aren't a form of compensation, what are they? If compensation isn't an expense, what is it? And if expenses shouldn't go into the calculation of earnings, where in the world should they go?"..."
Your analogy helps provide the answers to WB, options are an offer of ownership/partnership.
Regards, Don |
