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Gold/Mining/Energy : Indo-Pacific Energy Ltd. (INDX)

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To: lostmymoney who wrote (411)8/29/1997 2:04:00 PM
From: stanley new   of 866
 
Your definition of "option" is one correct definition, but the one referred to by the company is a different type option and is one used by most every corporation. It gives employees and directors the option to purchase shares at a certain price usually until a certain future date, often one, two or more years out. Look at jr. mining cos. and this is very prevalent, as Bema Gold is doing now, in order to attract key employees. It is often a method of rewarding employees,directors for success in enhancing shareholder value. The higher the stock price, the more everyone makes......similar to a bonus, but only of value if stock price rises or stays above option price.......sn
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