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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 72.72-2.3%2:12 PM EST

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To: rkral who wrote (64469)9/11/2003 10:43:51 AM
From: Kirk ©  Read Replies (2) of 77397
 
RE:
Choose a) or b):
a) Options *are* a business expense.
b) Options *are not* a business expense.


B)

Options are an expense that is paid by the shareholders in the form of dilution. They are usually a net positive cash flow event for the company.

Back in the days when Gates, Ellison and Siebel owned 95% of the shares of the companies they ran, then it made sense to give some of "their assets" to the company employees in order to make the company appear more profitable with lower operating expenses. After all, they were giving up maybe 2% a year of their assets to make the remaining 95% go up 30% or so. It was a good deal for them.

It amazes me that so many just don't get it.....
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