How high will Microsoft fly? Message Board

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Technology Stocks : How high will Microsoft fly?

MSFT 456.91

-0.5%

Jan 15 3:59 PM EST

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To: t2 who wrote (13847)	1/5/1999 7:57:00 PM
From: Daniel O'Keefe	Read Replies (1) of 74651

Tech2000: I enjoyed Ed's view of the next year as well, particularly his thoughts on implications of growth in e-commerce and stock price projections! Regarding stock splits, however, normally employee stock options split as well; that is if an employee holds options to buy 100 shares at a price of $100, he/she will have options to buy 200 shares at $50 if the company does a 2-1 stock split. Hence, the impact on the company's employee stock option liabilities should be neutral. If this were not to happen, a company would have a lot of very unhappy employees as the value of their options would be cut in half.

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