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Pastimes : The Big Picture - Economics and Investing -- Ignore unavailable to you. Want to Upgrade?

To: Arik T.G. who wrote (649)	11/3/2000 11:27:42 AM
From: Don Lloyd	Respond to of 686

ATG - Just a quick answer for now. ...But if the company buys back its shares to compensate for employees' options, this is an "investment" and shareholders are not hurt?... Forget the part about compensating for employees' options. This a pure investment decision in and of itself. If the company can buy back the shares for say $0.01 a share, the increased proportion of ownership for each shareholder share will presumably outweigh the shareholder funds expended in the buyback. If the shares cost $1M per share, the reverse is true. But since the stock will always be repurchased at a current market price, it will never be obvious whether or not it is a good investment at the time. But, eventually in hindsight, the question will have an answer, one way or the other. Regards, Don