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Technology Stocks : Dell Technologies Inc.
DELL 129.98-6.2%Dec 12 9:30 AM EST

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To: Chuzzlewit who wrote (138081)7/29/1999 8:23:00 PM
From: Richard Forsythe  Read Replies (1) of 176387
 
Oh I see what you mean. How would you charge the P&L for the effect of dilution? Black-sholes isn't appropriate, I don't think. In one sense it is clear, because the "basic" EPS does not account for options, whereas the "diluted" EPS does. So the difference is roughly caused by options.

Also, most tech companies offer stock purchase plans -- buy stock at 85% of market price six months ago. It's a good "bonus", but suffers from the same issue as options -- it dilutes the stock. How should one account for that, I wonder?

Richard
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