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.

Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Skeeter Bug who wrote (76471)	2/23/2000 11:06:00 PM
From: Don Lloyd	Read Replies (1) \| Respond to of 132070

SB - [[...choice 1: issue 10 stock options that get exercised for $10 each. choice 2: place a secondary for 10 stock shares at $10 each. what is the difference between scenario 1 and scenario 2? everything is the same except scenario 2 generates $100 to the company while secnario 1 doesn not, all else being equal. that is the opportunity cost. given the two choices, you lose $100 if you select choice 1...]] You must be thinking of something different than I am. When the employee(s) in scenario 1 exercise the 10 options at the $10 price the $100 goes to the company just the same as in scenario 2. Regards, Don