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Dec 31, 2002

Options brouhaha

Most agree stock options should be expensed. The question is how

Expensing stock options is one of the many accounting issues that gained urgency in the wake of Enron, WorldCom and other corporate scandals, where it was revealed that senior executives were pocketing millions of dollars from cashing in hefty option packages. Investors were now hip to senior executives who mischievously inflated stock prices in order to increase the amount of cash they would earn when exercising their options. The consensus today is that investors want to know more about

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