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Strategies & Market Trends : Employee Stock Options - NQSOs & ISOs

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To: Don Lloyd who wrote (776)8/15/2005 7:34:10 AM
From: rkralRead Replies (1) of 786
 
Don, re "If the company [ ...] bought existing stock on the market and gave it to the employees wouldn't you expense the cost of the stock?"

Of course, with some important differences.

I would expense the stock on the date "given", with the FMV on that date, and even if not purchased on the open market.

Compensation is about the value an employee receives ... at the time it occurs ... in exchange for services rendered. Whether stock is purchased on the open market or fresh off the printing press is irrelevant.

Ron
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