Originally Posted by HonestChieffan
Well no sense in arguing how its valued, its not a matter of your opinion its a simple fact. You either get it or you dont and you chose to not....Rail on my friend, you are a dedicated soldier Ill give you that.
There is nothing non-factual about what I said. If a stock drops below a strike price, the option is valued at $0 and you lose no money. If it's stock, you lose money every time the stock price drops. The difference in downside risk is tremendously different.
As for vesting... many CEOs can exercise their stock options after 1-3 years. That's not a lot of time and it creates enormous incentive to inflate earnings today then cash out.