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 : Cisco Systems, Inc. (CSCO)
CSCO 84.82+3.0%Feb 6 9:30 AM EST

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Dave who wrote (55261)9/16/2001 8:50:01 PM
From: Stock Farmer  Read Replies (1) of 77400
 
Dave & mindmeld... yes, I was guessing we are using the term "dilution" differently, and this indeed is the case.

I was using it in the sense that issuing shares gives everyone a smaller slice of the whole (it is called percentage dilution), and you are using growth offsetting metric (it is called economic dilution).

Here's a reference that defines both terms: web.mit.edu

It turns out that neither of us is "wrong" per se.

Now, that we've thrashed the semantic horse over acquisitions, what about issuing stock on exercise of options.

Is this substantive? Some would say it's a drip in a drop in the bucket. But perhaps we should do our homework.

From '95 to 2000, approximately 1.9 billion shares have been created for acquisitions and stock options. Shares outstanding 5.0 B (split adjusted) in 1995, 6.9 B in 2000.

Of that, 1.02 billion were for exercised stock options. Just over half. Surprised?

John.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext