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Technology Stocks : Cisco Systems, Inc. (CSCO)

CSCO 72.34

-2.9%

Nov 4 3:59 PM EST

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To: GST who wrote (60745)	8/6/2002 10:21:40 PM
From: aladin	Read Replies (3) of 77397

GST, From another discussion: Options are not an expense in any traditional sense because they will never require a company to sacrifice its existing resources. An options ?expense? neither uses cash nor consumes stockholders? equity. In fact, the company will generate cash resources when the options are exercised.... Remember how outrageous it seemed just a few months ago to read that telecom companies were recording as revenues virtually identical bandwidth traded without any associated cash inflows. Doesn?t it seem equally dubious to record an expense that the company will never pay? To put it simply, stock options would be a pretend expense that the company would never, ever be paid by the company. How do you respond? John

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