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

To: Wyätt Gwyön who wrote (47783)	2/2/2001 11:23:13 AM
From: The Phoenix	Read Replies (1) \| Respond to of 77400

MM, What???? Sell calls? Cisco should sell calls? I suppose every company could do this and sit back and watch the company valuations plummet. yeah, that makes a lot of sense. As for "monetizing the opportunity cost" - how do you figure.... ? OG

To: Wyätt Gwyön who wrote (47783)	2/2/2001 11:23:13 AM
From: The Phoenix	Respond to of 77400

MM, What???? Sell calls? Cisco should sell calls? I suppose every company could do this and sit back and watch the company valuations plummet. yeah, that makes a lot of sense. As for "monetizing the opportunity cost" - how do you figure.... ? OG

To: Wyätt Gwyön who wrote (47783)	2/2/2001 12:12:55 PM
From: Adam Nash	Read Replies (1) \| 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. The issue is not whether or not it can be quantified. The computer example I gave could be quantified. The point is that opportunity cost is not an accepted, reasonable metric used in the basis of accounting. It is an infinite can of worms that would make it impossible to issue financial statements at all. Cisco could also take the cash it pays employees, and buy QQQ shares on the open market. Is that an opportunity cost when the Nasdaq rises? Yes. Should the potential gains from the Nasdaq be expensed? No.