1. Home
  2. Business & Finance
  3. Investing for Beginners
Correct!

In a gross oversight, stock options are not carried on the balance sheet as an expense, as they should be.  Ironically enough, the IRS allows a company to treat them as an expense.  Tech Giant CISCO paid almost no income tax last year because it issued so many options... so if they IRS counts it as a deducible expense, why aren't shareholders given reported earnings with options priced in?  Because if they were treated like the expense they are, CEOs would not be awarded such disgustingly high salary packages  Continue quiz>


Subscribe to the Newsletter
Name
Email

Explore Investing for Beginners
About.com Special Features

Start your new business on the right foot with these helpful tips. More >

Easy steps to take control of your credit card debt. More >

  1. Home
  2. Business & Finance
  3. Investing for Beginners

©2009 About.com, a part of The New York Times Company.

All rights reserved.