Hi all,
Sorry if this has been posted, it's Gretchen in todays' NYT'S;
NEW YORK -- The wondrous innovations of America's technology companies make them the envy of the world. But for some of the biggest names in technology, one of the most profitable inventions is not about computer hardware, software or microchips. It's about finance, and it is generating hundreds of millions of dollars -- tax-free -- a year.
Intel, Microsoft and, to a lesser degree, Dell Computer sell put warrants on their own stock to outside investors. The warrants give buyers the right, for a limited period, to sell shares of stock back to the company at a set "strike" price below the market at the time they buy. In the quarter ended Sept. 30 alone, Microsoft took in $225 million from the sale of puts -- a sum equal to 13.4 percent of its net income in the period.
nytimes.com
Sober reminder for us borken bears!!!
best,art |
