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

To: RetiredNow who wrote (64544)	9/14/2003 6:32:49 PM
From: Boca_PETE	Read Replies (1) \| Respond to of 77400

mindmeld: RE("financial statement were created for one purpose and that is to provide an accounting of how shareholder wealth is being used") Financial statement were created to provide an accounting of how shareholder wealth HELD IN CUSTODY BY THE COMPANY is being used, not all shareholder wealth. Therefore, A COMPANY giving away stock options DOES NOT impact shareholder wealth HELD IN CUSTODY BY THE COMPANY, as such the OPTIONS SHOULD NOT BE EXPENSED on the income statement OF THE COMPANY. In fact, nothing happens on the date options are granted since the stock market value and the option price must be equal and no cash flows into the company. A corporation is a legal entity unto itself separate from its' shareholders. This is not self delusion - it's reality. If what you assert were true, companies who have to consolidated all personal transactions of its' shareholders with company financial statements. P