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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: chic_hearne who wrote (47738)	2/1/2001 1:16:49 PM
From: The Phoenix	Read Replies (1) \| Respond to of 77400

chic, You're comparing an optionee from say last year versus a stockholder from today. To compare this correctly you'd have to assume an optionee get's a grant at $10 and on that day a stock holder buys for $10. Both are betting that the stock does well... the optionee since he's taken a grant in lieu of pay, or as an incentive (depending on how you want to look at it) and the new stock holder. The stock goes up to $40/share the options exercises and sell and pockets $30 less tax and the shareholder pockets $30 less tax. As a new shareholder at $40 you invest based upon full knowledge of where the companies current fundamentals are... including knowledge of outstanding options and their average strike price. OG