ephud, "No, it is always exactly the same as the grant value. That's the point."
First, it is technically impossible. Imagine (I know,
you can :-) a board meeting that signs stock
options for all top brass of Intel. According to you,
right after a chairmen signs paperwork, all
Intel's brokers rush on with buy orders for all those
millions of shares, so Intel can "back up" the grants,
right?
More, to show how absurd your scheme can be, let me
put some more realism into your "example":
Step -1: Year ago Johnny had $0.20, and he bought 1
share. (Let say that he granted an option to buy this
share to Paul, but a year later Paul was fired for a
bug discovered in his microcode).
Step 0: Half year ago Johnny had $0.30, so he bought
another 1 share;
Step 1: Today Johnny has $1.
Step 2: Johnny buys 1 share for $1.
Step 3: Johnny grants Mary an option to buy 1 share for $1 next year.
Step 4: Next year Mary hands Johnny $1. Johnny hands Mary 1 share.
So, let me ask you, which particular share was handed
to Mary? Johnny has 3 shares, $0.50 average price.
Why Johnny would not tempt to sell Mary the share
that cost him $.20, and make a "profit"?
Even more, your construction is based on concept of
Johnny buying, owing, and holding the stock. While it
is fine with individual owners, I have some concerns
whether this concept is applicable to a company itself.
The share is a fraction of company, so how it is
philosophically possible to own your own share?
I am no accountant, just goofing around, but I am
really feel uncomfortable with the concept of a company
owing it's own shares.
- Ali |
