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  • Fools Corner
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Is your biotech giving away the store?

Nature Biotechnology volume 20, page 1079 (2002)Cite this article

The Sitting Pretty Investment Club was in a feisty mood, drawing attention during their regular meeting at the Bull & Bear pub. The subject? Companies that grant a huge percentage of employee stock options (ESOs).

“It's criminal!” Clyde Goforth said indignantly, though his techie garb of shorts and sandals made indignation hard to pull off. “It's like mutual fund expenses. If your mutual fund pays 2% a year in expenses, its stock portfolio must rise 2% just for you to stay even. Similarly, if a company whose shares you own grants 3% of outstanding shares in the form of ESOs each year, its stock has to rise 3% for a shareholder to stay in the same place.”

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  1. Tom Jacobs
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Tom Jacobs, of the Internet site Motley Fool (), provides his angle on biotechnology investments. Read on and become “Foolishly” informed*. He can be contacted about biotechnology and investing at . Jacobs cannot give individual investment advice but welcomes any.

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Jacobs, T. Is your biotech giving away the store?. Nat Biotechnol 20, 1079 (2002). https://doi.org/10.1038/nbt1102-1079

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