Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Employee Stock Options - NQSOs & ISOs -- Ignore unavailable to you. Want to Upgrade?

To: rkral who wrote (30)	6/13/2002 10:01:36 PM
From: Stock Farmer	Read Replies (1) \| Respond to of 786

"note: this approximation produces an error of n/N". Ron, in some companies, that's enough error to drive a billion dollars through. You don't like $X. How about this. Before the transaction, Mr. Market owns 100.0000000% of the company (to whatever significant digits you want to take it, no approximation), plus a pile of cash worth $70.00 + x$, whatever x is. After the transaction, Mr. Market owns 100.0000000% of the company too. Also to whatever significant digits you want to take it. No approximation. Plus a pile of cash worth $0.00 + x$, whatever x is. So through Mr Market's ownership of The Company, Mr. Market only gains or loses 100.0000000% of what the company gains or loses, minus the $70 in cash that Mr. Market paid the employee for the share. It's pretty clear that before the company's tax credit Mr. Market loses $60, and after the company's tax credit Mr. Market loses $40. John