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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: rkral who wrote (173592)	3/15/2003 1:02:27 PM
From: Lizzie Tudor	Read Replies (2) \| Respond to of 186894

Mr. Ratigan should have followed up with: Mr. Barrett, proponents of option expensing will claim Intel could have sold those options to underwriters for $3 billion, and by granting the options to employees instead, Intel effectively compensated employees with $3 billion. How do you respond to that? He could have followed with... Well, at this stage in the maturity of intel as a company... that may be true, it is perhaps possible that there was a market for intel stock options to the tune of 3 billion. But for most of the life of intel as a company, and for that matter most technology companies overall, there is no external market available for employee stock options. The companies involved are too small and either not public or not liquid enough to be of interest to the financial markets to the degree required. If there was a market for employee stock options in an emerging growth company, the premium assigned would be so high as to make any sort of trade prohibitive- we certainly wouldn't want to expense one of the excessive risk premiums assigned to some of the hypergrowth companies of the 90s for example, and after all, risk is something of a phantom value assigned by financial institutions... not an actual expense that intel or any tech company endures.