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

To: Don Lloyd who wrote (82659)	8/2/2000 6:22:05 PM
From: Mike M2	Read Replies (2) \| Respond to of 132070

Don, I think you lost your marbles -g- Since most companies buy back shares, many with debt,in an effort to prevent dilution there is an opportunity cost in that the money could have been used for productive investment rather than financial engineering. The policy of maximizing shareholder wealth via financial engineering will have consequences in the future . mike

To: Don Lloyd who wrote (82659)	8/2/2000 6:24:07 PM
From: starhawke	Read Replies (1) \| Respond to of 132070

I just had to say Thank You, Don for your many lucid, well-reasoned posts to the boards. You are always concise, on topic and informative. So again, thanks. However, I suspect that it may not do a lot of good most of the time. In discussions with friends, I've had the most success in describing option situations as sort of three-way transactions involving the company, the shareholders and the option holders/employees. (Simplified, I know.) The main point is that the 'costs' are not necessarily borne by the same parties which receive the benefits. That's one of the biggest mental hurdles for some to get over. But it is kinda nice when you get that dawning, "Oh!" and the big eyes. Yes, it is very simplified, but it has lead to dawning understanding, and intelligent follow-up questions being asked. It also segues nicely into theoretical exercises about tax benefits/stock-price effects when the stock price is rising...and when it falls. (Nasty <g> ) Again thanks, S PS. Re-lurking. I'll just GFM, now. (M = myself) <vbg>