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

To: rkral who wrote (178374)	6/23/2004 11:05:52 PM
From: Elmer Phud	Read Replies (1) \| Respond to of 186894

rkral Nice hypothetical. Too bad it's far far removed from reality. You're making a fundamental mistake. You must have misunderstood what I wrote. You are assuming the shares exercised in a given year are the same ones purchased in that same year. They needn't be. The options exercised in any given year were granted 5-10 years prior and the exercise price is essentially the repurchase price at the time of the grant because the shares delivered are the ones repurchased back at the time of the grant. So compare the income from exercise to the repurchase cost 5-10 years prior. The shares bought this year are the ones that will be exercised in future years at the same price they were bought today. That's why there is no loss to the shareholder.