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Technology Stocks : Intel Corporation (INTC)
INTC 40.78+0.7%3:59 PM EST

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To: Lizzie Tudor who wrote (177769)5/4/2004 2:28:13 PM
From: rkral  Read Replies (2) of 186894
 
OT ... Lizzie, re "these volitility (sic) issues are precisely WHY there are no tradeable options for new issues. "

Option exchange rules have little to with FASB accounting rules. Believe it or not, the FASB addresses this topic in SFAS 123. For example, it says ...

"an entity whose common stock has only recently become publicly traded will have little, if any, historical data on the volatility of its own stock. In that situation, expected volatility may be based on the average volatilities of similar entities for an appropriate period following their going public."

re "I don't think you have an answer other than the obvious - IGNORE THEM they are not real anyway"

I would not say anything of the kind, since the expense is real. However, I have said expensing options does not alter shareholders' equity and (net net) cash flow.

Ron

P.S. Not counting cites like the above, have you ever read any part of SFAS 123, "Accounting for Stock-Based Compensation"?
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