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

To: rkral who wrote (62917)	2/5/2003 9:52:25 PM
From: Amy J	Read Replies (1) \| Respond to of 77400

Hi rkral, Thank you for pointing that out and am very sorry it came across sounding like that and certainly didn't mean to come across as such. Sorry. The caps were meant as emphasis and I should have used bold instead (if I could remember how to get bold working in SI.) I was in a rush. I'll redo my post and make it clearer & more readable and appreciate you pointed it out. The points I'm emphasizing are: - options generate growth - options motivate for growth beyond today's grant or fair market price - there's no gain unless the Optionee works to grow a stock above fair market value - hard-core growth oriented investors prefer to see a company use options over stock grants - a person's answer should factor in motivation for growth - increases capability of risk taking by people - stock is taxed asap while options are taxed later - encourages people to enter because tax is paid later when they exercise (have money), including less advantaged people - easier to process, less costly to administer, more efficient - encourages risk taking because it makes vendors etc. eager to engage in risk-taking with a startup - optionee holders motivated to help company out beyond one vertical time-slice because they only gain when the stock goes up. (Why would a person want to give someone something that doesn't encourage growth?) - a summer student is going to be motivated to do a side project option grants, while stock grants create an immediate tax bill they have to pay - options conserve cash, are a fuel for startups and large companies - if Congress negatively impacts options in order to count pennies, they have the potential of negatively impacting the growth engine, which is the bigger picture. Regards, Amy J