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Technology Stocks : Intel Corporation (INTC)
INTC 36.78+2.7%Nov 26 3:59 PM EST

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To: GVTucker who wrote (174358)5/4/2003 2:52:56 PM
From: Tushar Patel  Read Replies (2) of 186894
 
Stock Options Expensing

One of the best articles I have seen on this subject appeared in March 2003 Harvard Business Review - "For the Last Time - Stock Options are an Expense". (For the record, the same magazine had an article in December 2002 titled "Expensing Options Solves Nothing".)

The authors make arguments that I found extremely convincing on the following 4 fallacies:

Fallacy 1 - Stock options do not represent a real cost
Fallacy 2 - Cost of stock options cannot be estimated
Fallacy 3 - Stock option costs are already adequately disclosed
Fallacy 4 - Expensing options will hurt young businesses
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