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

To: TimF who wrote (178372)	6/23/2004 9:07:20 PM
From: Elmer Phud	Read Replies (2) \| Respond to of 186894

twfowler Really? That's a bit of a surprise to read. I would agree with the argument that the shareholders are getting something for the options so that their net wealth can be increased, but I can't see how it is not possible to consider a dilution (or a potential dilution that is only prevented by shelling out cash for buybacks) to be anything other then a cost to shareholders when considered in strict isolation. Simple. Intel buys 2X shares @ $Y. At the same time they grant options on X shares @ $Y. No cost and no dilution.