Bob Brinker: Market Savant & Radio Host Message Board

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Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host

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To: Simba who wrote (16439)	8/9/2002 2:12:11 AM
From: Don Lloyd	Read Replies (1) of 42834

Simba, Since it is a non-cash expense whether it be attributed to the company or the existing shareholder, both do not deserve to get any tax deduction. Therefore the question of padding the company balance sheet with cash flow from tax deductions does not arise. The IRS got their taxes from the optionees exercising the options. Your third sentence is the reason why your first two sentences are wrong. It is a cash expense to the existing shareholder as soon as he sells any of his shares. It is never a cash expense to the company. Regards, Don

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