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

To: RetiredNow who wrote (62952)	2/7/2003 7:53:41 AM
From: Amy J	Read Replies (1) \| Respond to of 77400

Hi Mindmeld, RE: "Lizzie, the key to all of this debate is to think like a real owner of the company." Lizzie seems to think like me, and I'm a real owner of a company. RE: "If you owned a small company, you'd think twice about diluting your ownership by handing out stock options." If you owned a startup, you'd think twice about not. You're forgetting that it's employees/execs (not investors) that drive growth to the benefit of investors. Investors need to share to grow. Do you want a small piece of a big pie, or a large piece of a small pie? RE: "The reason is that you'd want a very clear method for determining how much those options were costing you. You'd want that cost to be reflected somewhere, either in the cash flows statement or the income statement, so that you'd know where you were spending your money." It belongs in the cap table. (or proxy statement) RE: "If you didn't track it and you started seeing your networth either steadily erode" Tossing stock stuff into the financial statements, distorts the picture. Execs need a clear vision on their operations so right operational decisions are made. RE: " I'm pretty sure you'd be upset." As an investor, I'd be upset if an accountant messed up the rules and negatively impacted Silicon Valley's growth engine." RE: "So the same is true here. We all just want the costs of doing business to be unequivocably and transparently recorded in the financial statements. " Doesn't belong there. Distorts the operational picture. Regards, Amy J