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Technology Stocks : Apple Inc. -- Ignore unavailable to you. Want to Upgrade?

To: JP Sullivan who wrote (55800)	8/12/2006 11:15:39 PM
From: Cogito	Read Replies (1) \| Respond to of 213176

Winston - I don't disagree that options have an impact on shareholders, in the form of dilution. I just don't see that backdating the options makes much of a difference. Actually, backdated options would always have a greater value to the recipient, so the company would not have to issue as many of them to get the same effect. Thus, backdating might benefit the shareholders, by reducing the amount of dilution. - Allen

To: JP Sullivan who wrote (55800)	8/12/2006 11:53:01 PM
From: Doren	Respond to of 213176

Allen is right. Options dilute and they are a perfectly acceptable way to compensate employees. Backdating does not dilute. However backdating does decrease real equity. According to Allen it's a small amount and I agree it's no BIG deal overall but it is a deal. This is where KIS is wrong. The fed intends to punish the egregious examples and slap everyone else's hands so they don't do it anymore. Unlike Enron which created no wealth, Apple actually MAKES something. The FED does not want to put productive corporations out of business. The FED desperately NEEDS ACTUAL producers. The comparisons to Enron are specious.