Once this strategy becomes known, executives could use it to game the system. I have 10,000 stock options. I would like to exercise them pretty soon. To bump the stock up, I get the board to announce that they're giving me a thousand more options. Investors rush in. The stock goes up. I cash in.
-- Michael Perelman Economics Department California State University Chico, CA 95929 Tel. 530-898-5321 E-Mail michael at ecst.csuchico.edu
