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Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host

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To: Boca_PETE who wrote (5192)5/26/1998 10:11:00 PM
From: Skeeter Bug  Read Replies (1) of 42834
 
>>A business
that issues stock options to employees has no reduction to net worth because no assets
are paid out and no liabilities are increased.<<

this is often not true. lots of companies issue options and then buy back stock. they don't do it with monopoly money.

you appreciate creative accounting. i appreciate reality in accounting. the spirit of the law is important to me not the letter of the law - that you rightfully point out allows for this "slick accounting."
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