Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : C-Cube -- Ignore unavailable to you. Want to Upgrade?

To: JEFF K who wrote (46551)	10/26/1999 10:49:00 PM
From: Black-Scholes	Respond to of 50808

"Isn't this insider buying". No, GAAP and the SEC consider it "compensation" - not an insider transaction. If the company is in a quiet period, the employees receiving the options may exercise them but may not sell the shares in the open market. The real argument in the accounting world about employee stock options is the following: Conservatives want the issuing of options to be valued and expensed as an augmentation to wages - regardless if the options are "in-the-money.". Liberals support the status quo. Currently, employee options only expand the fully dilutive base of shares and only if they are "in-the-money."