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To: Lizzie Tudor who wrote (64131)	5/30/2003 3:05:42 PM
From: rkral	Respond to of 77400

OT ... Lizzie, re "I don't think its covered [edit: by SFAS 123] rkral, I don't think expensing works for IPOs." Really? Have you checked your copy of SFAS 123 to be reasonably sure your thinking is correct? re "For the same reason there are no options on new issues." I am not familiar with the rules of an option exchange, eg the CBOE, as regards trading of options on new stock issues. What are they? re "I would never give a company away like Google if I had to IPO with a valuation that reflected billions of phantom expenses on my books." Since Google is not public yet, how do you know whether or not expensing options would have a significant impact on their income statement? Regards, Ron

To: Lizzie Tudor who wrote (64131)	5/30/2003 3:12:28 PM
From: GVTucker	Read Replies (1) \| Respond to of 77400

Lizzie, RE: And for good companies, the founders aren't going to IPO on unfriendly terms. I know I wouldn't... I would never give a company away like Google if I had to IPO with a valuation that reflected billions of phantom expenses on my books. Who would? These companies will remain private if the equity market is unfriendly. You have consistently stated in the past that Wall St analysts will ignore the expenses due to stock options and add this number back to net income. Now, in the above paragraph, you seem to imply that this won't happen. Which is it?