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To: Swordmaker

Try to stop hyperventilating and listen. First, common stock does not have a “face value”. Second, the value in what Apple gave Xerox was the bargain price. Xerox obtained to the right to buy shares pre-IPO at a price that was substantially below what everyone expected the IPO offering price to be. In fact, the IPO price was $22/share, which obviously vindicated taking the option on the 100,000 shares.

Apple, like, most new companies was using its stock as a form of currency, and there were also probably tax benefits for Xerox in that it was probably able to treat part of its gain on the shares as capital gains.

So, yes, Apple paid Xerox for the visits, which is what I wrote. The payment, however, took the form of an option. Xerox made out very well.


83 posted on 10/22/2011 5:17:34 PM PDT by achilles2000 ("I'll agree to save the whales as long as we can deport the liberals")
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To: achilles2000
So, yes, Apple paid Xerox for the visits, which is what I wrote. The payment, however, took the form of an option. Xerox made out very well.

No, achilles2000, you did not. You are now dancing, trying to rewrite what you wrote. And common shares do indeed have an issue value. There was no option to buy 100,000 shares, Apple gave them 1,000,000 shares of pre-IPO shares at $7 a share in exchange for the visits AND the rights to use what they learned on the visits. This has been reported many times. That was the "par value" of the stock at the time it was transferred and the value listed in the agreement Apple gave the judge that resulted in the dismissal of the Xerox lawsuit.

103 posted on 10/28/2011 10:01:11 AM PDT by Swordmaker (This tag line is a Microsoft product "insult" free zone.)
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