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

To: Elmer Phud who wrote (180957)	4/30/2005 11:07:43 PM
From: Ali Chen	Respond to of 186894

ephud, "No, it is always exactly the same as the grant value. That's the point." First, it is technically impossible. Imagine (I know, you can :-) a board meeting that signs stock options for all top brass of Intel. According to you, right after a chairmen signs paperwork, all Intel's brokers rush on with buy orders for all those millions of shares, so Intel can "back up" the grants, right? More, to show how absurd your scheme can be, let me put some more realism into your "example": Step -1: Year ago Johnny had $0.20, and he bought 1 share. (Let say that he granted an option to buy this share to Paul, but a year later Paul was fired for a bug discovered in his microcode). Step 0: Half year ago Johnny had $0.30, so he bought another 1 share; Step 1: Today Johnny has $1. Step 2: Johnny buys 1 share for $1. Step 3: Johnny grants Mary an option to buy 1 share for $1 next year. Step 4: Next year Mary hands Johnny $1. Johnny hands Mary 1 share. So, let me ask you, which particular share was handed to Mary? Johnny has 3 shares, $0.50 average price. Why Johnny would not tempt to sell Mary the share that cost him $.20, and make a "profit"? Even more, your construction is based on concept of Johnny buying, owing, and holding the stock. While it is fine with individual owners, I have some concerns whether this concept is applicable to a company itself. The share is a fraction of company, so how it is philosophically possible to own your own share? I am no accountant, just goofing around, but I am really feel uncomfortable with the concept of a company owing it's own shares. - Ali