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

To: Mama Bear who wrote (83014)	8/16/2000 3:18:17 AM
From: Bilow	Read Replies (1) \| Respond to of 132070

Hi Mama Bear; But the sage of Nebraska is right. Options are an expense, and need to show up on the earnings line. Companies simply cannot offer things of value (such as partnerships or earnings shares) without counting it as a cost of doing business. With publicly traded companies, there are ways of estimating the value of options based on volatility &c. These are the way things should be done. The calculations are made at the time the options are granted, not at the time they are exercised. This means that the business does not treat them as a debt that goes up or down in value with the stock price, but as an offer of a percent of ownership. Could it be that the real problem you have with the concept is the nebulous technique for determining the value of the option at the time of grant? -- Carl

To: Mama Bear who wrote (83014)	8/16/2000 3:33:55 AM
From: Don Lloyd	Read Replies (2) \| Respond to of 132070

Barb - [...That's why it was a sole proprietorship rather than a public company with many shareholders, BOD, and employees. ...] If we compare two public companies, one which offers options, and one which does not, it will soon become clear that the REAL COST is that suffered by the non-option company which will never be able to attract and retain any of the 6 sigma entrepreneurs who will end up having created virtually ALL of the wealth over the next century. Regards, Don Carl must be a politician. He seemed to agree with me for a while, but he didn't stay bribed for long. -g-