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Technology Stocks : Intel Corporation (INTC)
INTC 36.20+0.1%Dec 26 9:30 AM EST

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To: Elmer Phud who wrote (178421)6/27/2004 12:55:11 PM
From: TimF  Read Replies (1) of 186894
 
The options are not the right to get free shares at no cost.

Agreed, at least for most options.

The options do not cause dilution because Intel is repurchasing more shares than exercised by grant holders

My main point was that there is a cost, and apparently one not counted as an expense by GAAP to buying them back in order to prevent the dilution.

I only wanted to dispel the notion that Intel's board of directors is no different from Enron's.

Just to make it clear I am not arguing that the actions of Intel's board or senior execs has been anything like that of Enron's board and corporate officers. Intel's behavior in dealing with and accounting for options is as far as I can tell a fairly normal, wide spread, and legal practice.

Tim
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