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

To: Don Lloyd who wrote (64506)	9/15/2003 9:54:51 PM
From: rkral	Read Replies (1) \| Respond to of 77397

OT ... Don, re "I'm going to paste your example below and edit it so that it involves stock instead of options" The issue currently before the FASB and IASB is relative to option grants. Stock grants are already expensed. So what's the point in presenting a stock grant scenario? re "the shareholders do not exist for the benefit of the company" I didn't say that. re "If you and I didn't restore our 50% ownership shares, then there would have been ownership dilution" That's exactly my point. An existing shareholder experiences an asset loss by either an option grant or a stock grant. Painting a scenario where an existing shareholder restores his original ownership percentage is merely a way to put a dollar amount on that asset loss. But the same asset loss occurs, whether or not an existing shareholder restores his original ownership. re "The $660 expended by the shareholders to restore their 50% individual ownership of the company is in no way a company expense." As I mentioned above, stock grants are currently expensed. Ron