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Technology Stocks : MSFT Internet Explorer vs. NSCP Navigator
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To: K. M. Strickler who wrote (17355)2/10/1998 3:55:00 PM
From: Charles Hughes  Read Replies (1) of 24154
 
>>>I thought that the shares would be sold from the treasury also

Scenario question:

If MSFT just buys the shares and hands them to employees who don't cash them in, the market price goes up.

If they do what some companies do, where the assigned broker buys shares in the market, the employee immediately sells most of them to get the funds to keep the rest, and the price stays about the same. (Actually this transaction is all done at once, and the employee is usually unaware of the details.) And the broker makes more money.

So doing it this way MSFT saves employees the broker fees and pushes up their stock price, while encouraging the employees to accumulate stock rather than take the money and run. Do I have this right? Half right? Or what?

Chaz
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