Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: nommedeguerre who wrote (12268)	4/27/1998 11:42:00 PM
From: Eric Yang	Respond to of 213177

"Somehow $400 million in options does not seem justifiable on two $50 million quarters alone. I'm pro-Apple but think it is way too early to start playing Michael Dell with the options." Again, Apple is not giving away $400+ million. It's 17 million shares worth of stock option. . Executives who are granted these shares benefit from the difference between the market price of the stock and the exercise price of the option. Eric

To: nommedeguerre who wrote (12268)	4/28/1998 9:37:00 AM
From: Bill Jackson	Read Replies (1) \| Respond to of 213177

Norm. Options are paper and are usually granted at the current market price, minus a strictly limited discount(which varies from jurisdiction to jurisdiction, some use a weighted 10 day average and no discount) The person who has the option has the right to buy the stock at the option price for some period, usually a few years. Right now we would have options at $27 and if Apple goes to $40 he can sell at $40 and buy at $27, making a $13 taxable profit. If Apple goes to $20 the options are worthless. They are usually called an incentive stock option plan. New companies often have a bank of options set at the original low price to reward employees after so many months of employment they get these options at the low-low set price, and they become 'vested'. Apple made a few millionaires this way in the 80's. Currently I think the options will be at or close to market and the getters will be rewarded only if we are rewarded at the same time by higher stock prices. If there is any error in the options set price for Apple, please comment, anyone. Bill