Jordan Hayes jmhayes at j-o-r-d-a-n.com
Fri Mar 10 12:31:38 PST 2000

From enrique at anise.ee.cornell.edu Fri Mar 10 12:00:27 2000

There is a good reason why no tech companies, not even

mature, nominally profitable ones, pay significant dividends

- they just don't have the free cash flow.

Tell that to Microsoft ($17.8B), Intel ($11.5B), Cisco ($4B) ...

If stock options were expensed using, say, the Black Scholes

model, the NASDAQ would collectively report an enormous

loss, year after year.

That's a silly proposition: if they were expensed, they wouldn't be so plentiful. That's like saying "If Bill Gates sold all his MSFT stock, MSFT would trade down to $1" ...

It's just bad math/logic.


I think it's more useful to see stock options as an outsourcing of compensation to the company's shareholders directly rather than washing it through the annual report :-)


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