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Technology Stocks : All About Sun Microsystems -- Ignore unavailable to you. Want to Upgrade?

To: Ali Chen who wrote (50700)	7/25/2002 4:23:43 PM
From: Charles Tutt	Read Replies (3) \| Respond to of 64865

I think where we're not communicating is that I think accounting should recognize value in compensation options regardless of their lack of liquidity (not being able to buy or sell them) and the ability of the company to satisfy them by issuing more stock (without having to pay a "cost" directly to others). Neither liquidity nor cost of creation is directly tied to the presence or absence of value in my thinking (although both do tend to correlate with the magnitude of the value involved in the eyes of those who choose to evaluate it). The bottom line is that people would be willing to exchange money or other things of value for such options if they could (i.e. if liquidity existed). The "cost" of options is the dilution involved in their exercise (or the cost of the shares bought to avoid such dilution). JMHO. Charles Tutt (SM)