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-----Original Message-----
From: Bush, Dean <deanbush@xxxxxxxxxxxxxx>
To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
Date: Sunday, November 16, 1997 3:22 PM
Subject: May I ask a stupid question?
>I'm almost embarrassed to ask this question regarding employee stock
>options, but could someone explain how these work? If stock options
>expire--usually no longer than one year--how can employees hold options as
>long as they do and leave the company as millionaires?
>Thanks of any amount of enlightenment you can extend me.
>Dean
>
Dean:
An option's expiration date is determined by the issuer, in this case
the Board of Director of the company. The option class can be structured to
expire in one year, five years or 10 years or more. As you well know, these
types of options are offered to attract superior management who can then
benefit from their management skills by the increase in the price of the
stock, hopefully many times higher than their exercise price. This does
not always happen.
Good trading
jdfo
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