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To: Stcgg who wrote (51545)5/21/2000 9:00:00 PM
From: The Phoenix  Read Replies (1) | Respond to of 99985
 
Sheesh. Really now. This practice is within the law - has been and hasn't been hidden. This isn't an accounting irregularity it's allowed according to FASB... What I don't understand is your point about losses being counted as profits. You've lost me. If you have shares at no cost (not part of the float) and you give these to employees all you've done is potentially dilute the value of the company in the open market. If the stock goes down these options are worthless...

Please explain your position because there have been many like you that have suggested accounting irregularities but know one has been able to explain it.

FWIW I don't think the SEC is investigating anything. I believe the FASB is evaluating the practice. But it is legal today and any company can do it. What you're saying is it's not fair because all companies don't do it. Well, a lot of basketball teams say Shaq ain't fair...but he's still playing the game. Those are the rules. I suppose all those other team could go find their own Shaq... but hopefully theirs will be able to shoot free-throws. LOL!

OG