Backdating Options . .

First, I'm not sure I understand corporate stock option structure very much, if at all. I don't have a MBA or have any real corporate experiences.

When WallStreet discusses stock options, what exactly happens. Does the company write calls on its own stock and give them out as Christmas presents to good employees?

Whatever stock options are? how do you backdate them? Is this strictly an accounting issue?

Thanks

imamicph

 

http://abclocal.go.com/kgo/story?section=business&id=4364236

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2006/07/15/cnfbi15.xml

Although, pay attention to the last sentence:

""Illegally backdating options gives the company insiders an unfair advantage over the investing public and contributes to shareholders' lack of trust in those executives who are running these com-panies," Mr Balizan said. In some instances, backdating stock options is perfectly legal, so long as it is disclosed."


Also try "springloading", that is even funkier....

 

I know someone knows about stock options . . .

 

This link might prove useful:

http://en.wikipedia.org/wiki/Employee_stock_option

 

Of course many ET'ers are well versed in options, but perhaps not necessarily the evil option incentive packages that are given to the upper eschelon of tyrannical corporate monsters.

I would say that most of us are here because we want no part of working for the "man". That is why we strive to be a part of the elite 5%ers of the trading world.

my 2c

 

So they aren't traded on exchanges.

i thought the company called the CBOE.