Cisco Systems, Inc. (CSCO) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Cisco Systems, Inc. (CSCO)

CSCO 71.30

-1.1%

3:16 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Lizzie Tudor who wrote (64468)	9/11/2003 11:43:54 AM
From: RetiredNow	Read Replies (1) of 77397

Hi Lizzie, you keep talking about stock options expense as if whenever they are expensed it is ALWAYS overcharging. Well, that's simply not true. Black Scholes expensing does overcharge in periods when there are massive stock price declines as in the last 3 years. But in the other 90% of time periods, the expense is very accurate. Then in periods of increasing stock prices like right now, Black Scholes can actually underestimate the expense to the company. But the point is that it is an expense that needs to be recorded. Not recording it all means that you are ignoring a cost of doing business.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next