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


To: RetiredNow who wrote (57691)2/19/2002 2:53:12 PM
From: Boca_PETE  Respond to of 77400
 
mindmeld - I agree with you.

The dilutive impact of more shares issued to employees under stock option plans is likely to be greater than the benefit to earning per share from the corporate tax deduction for stock option expense (could that be the reason CISCO is down over 1% at this hour?) :-)

And I agree that the company benefits by

(1) Increased cash received from the sale of shares to employees under stock option plans, AND,

(2) From the cash savings from the reduced corporate income taxes arising from the tax return deduction of stock option expense.

P



To: RetiredNow who wrote (57691)2/19/2002 4:14:51 PM
From: JeffT  Read Replies (2) | Respond to of 77400
 
Everything "temporarily increases net income", or decreases net income as the case may be, since all transactions are basically one time events with no guarantees about the future (such as a sales transaction). Right?

Jeff