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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?


To: Elmer Phud who wrote (178308)6/16/2004 6:44:19 AM
From: Lizzie Tudor  Read Replies (1) | Respond to of 186894
 
Another question: If someone is promised a future bonus for meeting performance goals should that bonus also be expensed right away?

This is key to me. Stock options are opportunity costs only, and most opportunity costs in business are not treated as real costs. Purchasing schedule discounts for example, granted to me if I sell xxx of some widget, has a value but only if I sell enough of the widgets. I don't get to recognize this benefit until it happens, months after the promise is made to incent me to buy more raw materials.



To: Elmer Phud who wrote (178308)6/23/2004 2:42:58 AM
From: Ali Chen  Read Replies (1) | Respond to of 186894
 
"When Intel buys back a share for $28 they are gaining $28 in value"

No, they don't. You keep repeating this nonsense for so
long that you become completely confused.
The accounting line in question states:
"Repurchase and retirement of common stock".
Which part of "retirement" you don't understand?

"that means the share price went up and the shareholders made a ton of money too?"
Quite a retarded argument. No shareholders made any
money unless they sell. Vast majority don't. But whoever
sold commons, they certainly did made some money.
Incidentally, I don't recall recently of any Intel officer
who exercised their "hard earned" options and kept them
for future enrichment - they sold every single exercised
option. And you bought those shares and effectively
paid their bonuses. Got the idea?

- Ali