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Technology Stocks : PSFT - Fiscal 1998 - Discussion for the next year -- Ignore unavailable to you. Want to Upgrade?

To: melinda abplanalp who wrote (3816)	12/3/1998 11:40:00 AM
From: Chuzzlewit	Respond to of 4509

Melinda, it means that since the price of the stock has fallen so much the company decides to allow its top executives to buy stock at a lower price than originally agreed. For example, an executive may had held options to buy PSFT at $40 per share. All was well until the price of the stock fell sharply, and then the company decided to lower the exercise price to around $20. The problem is that these options are not "incentives" in the usual sense, because the company continues to create safety nets in the form of repriced options. They really are salaries that never appear on the income statement. TTFN, CTC