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Technology Stocks : Ascend Communications (ASND)
ASND 211.05-0.7%Dec 1 3:59 PM EST

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To: hpeace who wrote (26775)12/7/1997 1:28:00 AM
From: Tech97  Read Replies (1) of 61433
 
Steve,

Dell is probably selling/writing put options on its stock (hence the liability on its balance sheet) and using the proceeds to buy call options on its own stock. The market value of the call options is generally reported as part of the securities portfolio. This is another way for companies to effectively buy back its own stock without significant initial cash outlay.

Hope that helps
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