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Technology Stocks : Cisco Systems, Inc. (CSCO)

CSCO 75.19

-0.1%

Jan 16 9:30 AM EST

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To: RetiredNow who wrote (65069)	11/16/2003 10:33:02 AM
From: rkral	Read Replies (1) of 77400

OT ... mindmeld, re "[ed: Stock grants] work just as well as options without the high cost. " The cost of stock grants might be less than, the same as, or greater than the cost of option grants, IMO. For example, if it happens that 40% of 10 million options are exercised, wouldn't the cost to existing stockholders be the same as if 4 million stock shares were granted? Their ownership would be diluted by 4 million shares in either case, wouldn't it? And, since the exercise price for nonvested stock grants is $0, wouldn't the cost of those 4 million shares of granted stock actually be greater? Stockholders' equity wouldn't increase via exercise dollars as it does for options, would it? Regards, Ron P.S. I'm ignoring tax effects here.

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