The reason the sec supports the issuance of options is because they are ALL INSIDERS. They want company officers to be able to be rewarded for good stock performance without having to put their own $$$ on the line. After all, sec officials were at one time company officers, for the most part.
Ask yourself this - how many of their own dollars have any txp officers plunked down to BUY company stock? But that's the way it is with most companies.
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