SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : PSFT - Fiscal 1998 - Discussion for the next year
PSFT 0.00010000.0%Oct 29 5:00 PM EST

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Chuzzlewit who wrote (3690)11/23/1998 12:43:00 PM
From: RetiredNow  Read Replies (1) of 4509
 
Chuzz, I am a CPA, or actually I was. I just let my license lapse. However, options are accounted for in the I/S. If a company has outstanding options, those options increase the weighted shares which are used in the calculation of EPS. So EPS decreases as the number of options increase. That's how options dilute the income statement, and consequently, the stock price. Since EPS, basic and fully diluted, are required to show at the bottom of every income statement, I can safely say that it is communicated to the stockholders. So it is not completely hidden from stockholders. They just need to know where to look.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext