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


To: Don Lloyd who wrote (64536)9/14/2003 2:45:35 PM
From: hueyone  Read Replies (1) | Respond to of 77400
 
If you would attempt to think for yourself

I love it when people criticize me for backing up my posts with links and sources. It always reflects more poorly on the criticizer than the one documenting his posts.

Regards, Huey



To: Don Lloyd who wrote (64536)9/14/2003 5:30:32 PM
From: RetiredNow  Read Replies (1) | Respond to of 77400
 
Actually, it would be very simple to account for every single shareholder's exercise of stock options. It's done every quarter and displayed in the footnotes. The only change required would be booking the expense instead of just in the footnotes. If it were up to me, I'd have a quarterly true-up of the expense as well to keep it as accurate as possible.



To: Don Lloyd who wrote (64536)9/15/2003 1:45:34 AM
From: PerryA  Respond to of 77400
 
If you would attempt to think for yourself, rather than parroting idiot politicians, you just might realize that the tax deduction effectively applies to the compensation expense suffered by the shareholders, not the company. It would be an impossibility to directly assign tax relief to the ever changing base of shareholders every time an employee exercises an option, so that applying it indirectly through the medium of the company is the only alternative.

Politicians may very well be idiots (with regard to finance and economics at least), but you are way off in ascribing the expense to shareholders. Why aren't the proceeds of a public offering taxed, since that entails dilution as well? Think about it. If you don't distinguish between financing and operating activities you can get all mixed up and arrive at wacky conclusions.

Regards,
PerryA