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

To: rkral who wrote (158)	8/2/2002 10:33:42 AM
From: hueyone	Read Replies (2) \| Respond to of 786

Hi Ron: Should you (or anyone) come across an instance of "stock grant", would you please let this thread know? Ok, I will if I come across one. Personally I like the argument that John Shannon began making over two years ago---that a company making a secondary stock offering, and then using the cash proceeds from the offering to compensate employees and thereby generate an expense, is the economic equivalent of issuing stock options to employees who later turn that money into cash by reselling those same shares to the public. The only difference between the two examples is that in number two we insert an extra person in the middle of the transactions. Yet in example two, companies inexplicably try to claim the transactions do not generate an expense. Best, Huey