April 23, 2004
Congressional Budget Office Says Stock Option Expensing Won't Affect Stock Prices of Economy
An analysis by the Congressional Budget Office (CBO) of the impact of stock option expensing concludes that neither stock prices nor the economy will be significantly affected. The CBO argued that the information on option expenses is already contained in footnotes and thus will not affect investment patterns. The report says, however, that the greater transparency expensing will provide is desirable. For a copy, go to www.cbo.gov. The study is titled "Accounting for Stock Options."