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Friday, September 15, 2006

Debunking Big Lies About Stock Options

Powerful lobbies are trying to repeal stock option expensing. If you own almost any high-tech company, you'd better take five minutes to understand why--or you're likely to get fleeced.

Here are the three big lies upon which the opposition to stock options expensing is founded.

Big Lie Number One: There is no way to know the expense, if any, of stock option grants.

Big Lie Number Two: Stock options aren't an expense.

Big Lie Number Three: The cost of stock options is already reflected in diluted earnings per share.

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