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Technology Stocks : DELL Bear Thread -- Ignore unavailable to you. Want to Upgrade?


To: Bilow who wrote (914)5/28/1998 7:34:00 PM
From: Marq Spencer  Read Replies (2) | Respond to of 2578
 
Carl,

An interesting point though. Any company that grants these options could sell them in the market - that is where the "fair market" value comes in. So, the company is giving up that much potential assets to its employees. If the accounting rule changed so that the fair market value was deemed to be income to the employees, and cost to the employer, the impact to the bottom line would be substantial. Check out the recent Forbes magazine which points out that, for last year, Dell would have shown a loss if that had been the case. Same with MSFT, in a big way (something like a $10B loss instead of a $2B profit, in rounded numbers).

- Brian.