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Politics : Formerly About Applied Materials
AMAT 328.51+1.9%Feb 2 3:59 PM EST

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To: Kumar Nathan who wrote (4902)5/29/1997 11:00:00 AM
From: w sun   of 70976
 
"...last week WSJ that companies routinely trade options on their own stocks. Journal said that Intel made $450M last year on trading Intel Option. Currently they hold $1B worth of Intel Stock in options. Likewise MSFT has $2B of their securities in options. This is a staggering number. In my opinion is that this should be banned. Corporations should not be in the business of trading options..."

Agree. It is more than 7% of its annual net income. Companies practice this hace a biased advantage. If the regulation allows it, sure companies will take the advantage.

--wsun
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