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

To: Don Lloyd who wrote (64564)	9/15/2003 2:34:55 AM
From: PerryA	Read Replies (1) \| Respond to of 77400

I think that it does in the sense that any expense that you record indicates an injury to existing shareholders in addition to the ownership dilution, but I could be talked of that necessarily being the case. You are nice to give me an opening, but I have no idea what to do with it! In any case, it is obvious that options have some value prior to expiration regardless of whether they end up expiring worthless or not. So, while this may be irrelevant to your comment, what happens after an option is granted is irrelevant to it's value at the time it is granted. The IRS, as previously noted, compromises this issue in order to avoid the difficulties in valuating the restricted, non-marketable options. Because options have some value at the time of issue, however difficult to measure, they do injure shareholder value in the sense that shareholders would prefer no potential dilution over some potential dilution. Regards, PerryA