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


To: Adam Nash who wrote (47777)2/2/2001 11:14:12 AM
From: kvkkc1  Read Replies (1) | Respond to of 77400
 
Adam,
A minor clarification. Even when the company issues new stock, there is no loss of value due to dilution of share price, to the company. Retained earnings stay the same.knc



To: Adam Nash who wrote (47777)2/2/2001 11:15:55 AM
From: Wyätt Gwyön  Read Replies (3) | Respond to of 77400
 
But bambs made a valid point--that Cisco could instead sell calls on the open market and rake in cash, instead of giving the options to employees. The amount it would be able to take in cashwise on the open market is the equivalent of monetizing the opportunity cost which you say cannot be quantified. Obviously, it can be quantified.