Intel Corp (INTC)

[Elmer Phud]

Dew -

The problem is that money does change hands – and lots of it. Companies like INTC spend billions of dollars each year buying back shares in the open market to offset the dilution caused by stock- option exercises. THIS IS A REAL CASH OUTLAY and is the true economic cost of option-based largesse.

I disagree. The shares bought today on the open market are to provide for the options granted today at essentially the same price as the ones just purchased. There is no real cost because if the shares are eventually exercised, they are exercised at more or less the same price as they were purchased for. It's a push.