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


To: TimF who wrote (178398)6/24/2004 10:29:33 PM
From: Elmer Phud  Read Replies (1) | Respond to of 186894
 
tefowler -

That just transfers the cost from being a dilution hit on the shareholders to being a direct cash hit on the company. It costs Intel $2XY to buy the shares. If you didn't have the options grant you could have had the same result by only buying $XY shares.

Huh? They buy 2X shares and they have 2X. They didn't part with the shares. They still have them. How does this differ from any buyback at this point? If years down the road they have to deliver the shares on exercise then they get $Y for each share exercised. They don't give the shares away, they sell them at the same price they paid. Why is this such a difficult concept?