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

To: Mo Chips who wrote (56549)	6/1/1998 9:21:00 PM
From: rudedog	Respond to of 186894

Mo - Anything, thats ANYTHING, the company does that results in disposition of assets, whether it is inventory or options, results in an impact to the p/l. I think any accountant would disagree with you. Let's start with a simple example which makes the point obvious. employee options are a treasury transaction which is off balance sheet. Exercise of those options costs the company real cash, but results in an increase in cash on the balance sheet. Lots of interesting things a company can do to fool with its own stock that don't affect balance sheet or P&L. Likewise repurchase of stock is off balance sheet, the stock goes into treasury, the cash goes out. I believe that exercise of derivative instruments does not change the basic treasury transactions. Note that this is only true of Intel activity in Intel's own stock.