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

To: K. M. Strickler who wrote (52442)	7/19/1998 10:02:00 PM
From: Chuzzlewit	Respond to of 176387

Hi Ken, No, it's not like an IPO. instead, its like the company giving away 1 million dollars of shareholder value to some employes for $100,000 and not having to tell the shareholders what it did with their money. TTFN, CTC

To: K. M. Strickler who wrote (52442)	7/20/1998 1:49:00 AM
From: rudedog	Read Replies (1) \| Respond to of 176387

Ken - from the company's perspective, it is as if they sold the stock at the strike price instead of at market. Would you sell Dell today for $7 a share? Would you think that anyone who did that was smart? That's exactly what happens to the company when an employee exercises an option with a $7 strike price. Financially, the deal is just like Dell selling the stock to the employee for $7, then the employee selling it at market. With convertible options, that's exactly what DOES happen. You can argue that the stock does not 'cost' the company anything (we did about a hundred posts on this back in February, I think). But if you push this to the extreme (say a company that issues more stock in options than its current shares outstanding) you can see what this practice does to the shareholder value.