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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Road Walker who wrote (96151)	1/13/2000 8:17:00 PM
From: Saturn V	Read Replies (4) \| Respond to of 186894

Ref- <Those shares are purchased to compensate great employees. The employees who generate great profits. They are a less expensive currancy then salary, as they increase over time > It is grossly incorrect to say that the cost of stock buyback is Salary Expense. A part of the stock buyback is used for Employee Stock Options, and Employee Stock Purchase Plans. The Stock Purchase Plan is similar to typical Company plans where the company stock is sold to employees at a slight discount to the market. For Stock Option Plans the stock is sold to the employee at the price on the date of the option. Clearly Intel sells the stock to the employees, and the sale generates cash for Intel, and to describe cost of the stock buyback as employee compensation is incorrect. Furthermore the Stock acquired by buybacks is probably also being used for acquisitions. The shareholders of the acquired company are getting Intel stock, which was probably bought by the stock buyback program. Clearly ascribing the describing the cost of stock buyback as Employee Compensation ( as advocated by THE ALI CHEN SCHOOL OF ACCOUNTING) is absurd.