Stock options for executives spark debate and S&P funds guide
Readers ask about executive stock options and their fairness versus salaries. The letter explains options as cash conservation and motivation, notes critics say options shield executives from risk, and cites Warren Buffett’s view. It then provides examples of S&P 500 index funds and minimums, plus the SPDR ticker SPY as an alternative.
MENTIONED IN THIS ARTICLE
Execs
America Online
Steve Case
Case
Motley Fool reader letters and a banking trivia challenge
A reader recalls churned Home Depot trades and big commissions from 15 years ago, prompting advice to hold stocks longer. The Fool refutes the high commissions and urges longer-term holds. A bank trivia piece traces a figure from early 1900s to a coast-to-coast bank spanning 27 states and 38 countries, claiming control over a large share of deposits.
MENTIONED IN THIS ARTICLE
Bank of Italy
Transamerica Holding
America
Nations Bank
Disneyland
Golden Gate Bridge
Ralston Purina Co. trivia question summary
A historical quiz notes a 1894 birth in St Louis and a first slogan Where purity is paramount. It recalls early 1900s sale of a whole grain cereal for humans and animals, later diversifying to pet products. Visitor center serves 150000 yearly. partnered with Veterinary Pet Insurance. About half sales edible, half carbon zinc and alkaline products. Employs 23000.
MENTIONED IN THIS ARTICLE
St. Louis
Veterinary Pet Insurance Inc
Ralston Purina Co
After tax and inflation a stock return example
Ethel buys 5000 worth of stock in Las Vegas Light & Power and sells for 5800, a 16 percent return. After 28 percent tax, 72 percent kept yields 11.5 percent. Inflation at 2.5 percent reduces this to about 9 percent. Compare to S&P 500 and adjust strategy if needed.
MENTIONED IN THIS ARTICLE
Ethel
Las Vegas Light & Power
Uncle Sam
Ole Man
Bureau of Labor Statistics
Standard & Poor
What Is This Thing Called The Motley Fool
The Motley Fool is pitched as a truth telling investing guide that aims to entertain readers while guiding them toward profitable decisions. It positions itself as a humorous yet honest resource for navigating markets and building wealth.
MENTIONED IN THIS ARTICLE
Motley Fool
Imeteers Assets or Liabilities? Market Havoc From Hedge Fund Collapse
Shares of Merrill Lynch and Bankers Trust fall to multi year lows as Long Term Capital Management collapse exposes leverage risk in banks and brokerages. Investors worry about assets turning into liabilities as funds exposure and automated trading magnify losses.
MENTIONED IN THIS ARTICLE
Capital Management LP
Merrill Lynch
Bankers Trust
Also Mentioned on This Page
Joseph Cash
Bostic
N.C
Warren Buffett
S. F. Flint
Mich
Paul Sthe Hatch
Home Depot
al Copeland
Tampa
Fla
The
Foot
Brother al
Aly
Amity
Fookefool Com
Pitts St
Alexandria
Selena
the Motley Fool
Dist
Universal Press
He Food School
Real
Physician Offices
Kolbe Road
Lorain
Community Health Partners Cardiac Rehabilitation Unit
New Community Health Partners
Partners IN Health
Partners For Life
Catholic Healthcare Partners
Steve Polansky
Jocoha Glenna
Chronicle-Telegram
John Glenn
NIE
Telco A
EMH Regional Medical Center
the Ridge Tool Co
Northern Savings & Loan Company