SI
SI
discoversearch

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.
Strategies & Market Trends : Employee Stock Options - NQSOs & ISOs
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: rkral who wrote (685)8/1/2004 9:57:59 PM
From: Don LloydRead Replies (1) of 786
 
Ron,

Among other things, the option value is based on the stock price on the date of the grant. That's hardly arbitrary. Indeed, there is no other date more appropriate IMO.

You're exactly right, no date can possibly be appropriate.

If an employee has stock that he has acquired by option exercise sometime in the last 10 years, the current expense to shareholders depends on today's stock price and not at all on any other price on any other day in the past. On the other hand, if the shareholder injury is expressed in terms of ownership dilution percentage, it will be correct for every day in both the past and the future.

Each option is like a lottery ticket we buy for $1. Winners don't pay more for their tickets after they win ... and the losers don't get their $1 back....

You've made my point. Unexercised options do cause the shareholders to 'get their $1 back' as it is as if the option grants were never made at all.

Regards, Don
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News