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Technology Stocks : DELL Bear Thread
DELL 142.66+2.8%12:27 PM EST
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To: Marq Spencer who wrote (2311)11/22/1998 2:33:00 PM
From: Bilow  Read Replies (1) of 2578
 
Hi all; About those options and GAAP... I disagree with Brian, that's an interesting thought. You could just apply the Black-Sholes model at the time the option vests. I would agree instead with: Brian, that's an interesting thought. You could just apply the Black-Sholes model at the time the option is granted.

Otherwise, if the stock rises, the company will end up showing a huge expense for a deep in the money option (at vesting time) which was out of the money at the time of grant. It makes as much logic to charge that to the company as it does to charge the company for the change in value of stock owned by the employees. Nope. Instead, stock grants should be expensed at the time of grant.

But we've been through this before, to a great extent, on this thread.

-- Carl

P.S. I met this cool lady at a party last night, and between that and the design contract I've got going, I hope to not have enough time to log onto the internet for the next few weeks...
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