Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: PerryA who wrote (64587)	9/15/2003 2:48:54 PM
From: Don Lloyd	Read Replies (1) \| Respond to of 77400

Perry, So Don, are you disagreeing with the following? "... it is obvious that options have some value prior to expiration regardless of whether they end up expiring worthless or not." This is an ill-formed statement without a qualification as for whom the options are supposed to have value. Anyone, other than the company itself, who owns and controls these options has something of value IF they are free to realize that value in one way or another. OTOH, the company that grants them suffers no loss of value, nor does any stock that may result from their exercise create a loss of value to the company. This is because the company can replace them at an effectively zero replacement cost to itself. This is not true for the shareholders who suffer dilution of ownership, but this is always separately accounted for. Regards, Don