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Pastimes : Clown-Free Zone... sorry, no clowns allowed

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To: KeepItSimple who wrote (5529)7/25/2000 8:02:12 AM
From: Don Lloyd  Read Replies (3) of 436258
 
KeepItSimple -

[...If an option is not an expense, what is it?...]

It is a restructuring of the ownership.

If I give away partial ownership of my bag of marbles it does NOT affect the count of the marbles in the bag. It does NOT affect the value that a third party non-owner would be willing to pay for the entire bag. It DOES reduce the number of marbles that I effectively own, and the share of the sales proceeds that I would receive in the case of a sale.

I don't think I can make it much simpler than that.

Regards, Don
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