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Strategies & Market Trends : Employee Stock Options - NQSOs & ISOs
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To: Stock Farmer who wrote (71)6/17/2002 12:14:27 PM
From: rkralRead Replies (2) of 786
 
>>"A promise. A piece of paper called an "Instrument of Grant" which details how a future transaction involving transfer of capital might take place. The real value follows later. Is it the conditional promise itself that has value? Or the value that follows later that has value?"<<

Both.

>>"So you see that it is fair to claim that there is not any actual economic value transferred on grant. HOWEVER, this doesn't stop us from declaring the option to "have value" and to assign a fair price!!!"<<

I don't see that at all. Even an option that expired worthless had an actual non-zero value on grant.

>>"So where you claim that there are two values, indeed there is but one value!!! Measured as it is from two different perspectives, one of which is perfectly accurate but retrospective, and one of which is prospective but prone to error."<<

John, you've made that presentation many times .. and, as best I can recall, always without any proof .. or even a shred of corroborating opinion.

Why do you think such a presentation should be convincing to anyone? How about a chapter, paragraph, or even a sentence from FASB SFAS 123?

Ron

P.S. I just received a copy of SFAS 123. Looks like good material to cure insomnia.
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