Reply #1: "'expensing options" [View All]

[MajorFlaw]

This is more likely to help markets than hurt them. For years, corporations have granted stock options to officers, directors and other people they wish to reward. For accounting purposes these options have been treated as coming at no cost to the corporation. This is ludicrous; often officers, directors and promoters of corporations make most of their $ by cashing in their grants of stock options and not by an appreciation in the value of the security itself. If corporations are forced to "expense" the cost of options, it will reduce the misleading "profit" portion of a corp.'s financial statements by exactly the amount given to insiders. This is a very good thing and would have an equally good effect if applied to our own GAAP (Generally Accepted Accounting Principles), the "bible" for our own accounting professionals.