Yesterday, Cisco's sharp intraday rally - that occurred in the first few hours of the morning session - was an interesting display of the shareholder model at work. For those that missed the news, Cisco announced that it would soon drop the axe upon 10,000 more employees. When the news "broke" (a.k.a. "getting rehashed by CNBC hours/days after publication"), the stock began to rip.
The downside: you lost your job.
The upside: your employee stock holdings got one last boost at the hands of people celebrating your job loss.
Shareholder vs. stakeholder discussions will be encouraged in the future.
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