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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 78.030.0%Dec 24 12:59 PM EST

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To: RetiredNow who wrote (62915)2/5/2003 1:58:50 PM
From: Jacob Snyder  Read Replies (1) of 77400
 
<Black Scholes is flawed>

These type of arguments can be used to nitpick just about every aspect of GAAP reporting. My response is, it's far batter to have an accounting that is arbitrary and imperfect, than to just ignore a major cost. Some accounting for option cost, is better than nothing. And so far, the business community has been able to buy the votes in favor of "nothing".

<become worthless when the prolonged bear market ensued>

Except that company policy seems to be, to guarantee that all employees are holding in-the-money stock options, (by doubling up on options grants, at lower strike prices) when the stock goes down.
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