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Adams Capital Inc.

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Why Stock Option Valuation Is Necessary

As stock options become a more common type of compensation, the importance of accurate valuation increases. Typically, options are valued for the following reasons:

bullet.gif (231 bytes) Compensation related tax reporting
bullet.gif (231 bytes) Buybacks by the issuing company
bullet.gif (231 bytes) "Cheap stock concerns" see "Cheap Stock Article"
bullet.gif (231 bytes) Initial public offering reporting purposes
bullet.gif (231 bytes) Transfer to a third party

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© Copyright 2005, Adams Capital, Inc.
Updated April 2005
Adams Capital, Inc. - Business Valuation Services
600 Galleria Parkway, Suite 1850, Atlanta, GA 30339
770-432-0308 FAX 770-432-4138

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