Three people whom I talked with this week
This week, three different people whom I spoke with enjoyed hearing about our projects. These people are Yukio Kumazawa who has been a marathon runner more than ten years, Curt Lowry who is planning to run in New York Marathon this year, and Rachael Herpel who is an assistant director of Water for Food Institute on Innovation campus. The following are the details:
Yukio Kumazawa:
Yukio is a fan of marathon. He told me that he runs as a way to stay healthy and lose weight. He also enjoys the camaraderie of the running community and the thrill of road racing, and regaining the athletic glory experienced during an earlier stage of his life.
He already has his pictures when he ran New York Marathon seven Years ago. However, he is willing to pay $40 more for his …show more content…
When the company issues stock options, they must expense it as compensation. However, while that expense shows up as a cost in a profit report, the option requires considerably little cash on the company's part. This makes stock options particularly attractive to companies, because companies can invest as much of their cash as possible into capital improvements, acquisitions, and other things that grow the company.
Dilution
The main disadvantage of stock options is that they dilute the profit per share of existing shares and the ownership of outside shareholders. Dilution is not beneficial to existing shareholders and decreases the price of individual shares. Companies must choose between dilution and buying back shares at market price to resell to employees at a loss.
Excessive Risks
Stock prices are not stable but drastically fluctuate, which increases the risks of executives. Executives do not lose money when projects fare poorly because an option is not worth anything until used. However, when projects go well, executives cash in on their options and reap the
This week, three different people whom I spoke with enjoyed hearing about our projects. These people are Yukio Kumazawa who has been a marathon runner more than ten years, Curt Lowry who is planning to run in New York Marathon this year, and Rachael Herpel who is an assistant director of Water for Food Institute on Innovation campus. The following are the details:
Yukio Kumazawa:
Yukio is a fan of marathon. He told me that he runs as a way to stay healthy and lose weight. He also enjoys the camaraderie of the running community and the thrill of road racing, and regaining the athletic glory experienced during an earlier stage of his life.
He already has his pictures when he ran New York Marathon seven Years ago. However, he is willing to pay $40 more for his …show more content…
When the company issues stock options, they must expense it as compensation. However, while that expense shows up as a cost in a profit report, the option requires considerably little cash on the company's part. This makes stock options particularly attractive to companies, because companies can invest as much of their cash as possible into capital improvements, acquisitions, and other things that grow the company.
Dilution
The main disadvantage of stock options is that they dilute the profit per share of existing shares and the ownership of outside shareholders. Dilution is not beneficial to existing shareholders and decreases the price of individual shares. Companies must choose between dilution and buying back shares at market price to resell to employees at a loss.
Excessive Risks
Stock prices are not stable but drastically fluctuate, which increases the risks of executives. Executives do not lose money when projects fare poorly because an option is not worth anything until used. However, when projects go well, executives cash in on their options and reap the