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Strategies & Market Trends : Zeev's Turnips - No Politics
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To: Softechie who wrote (61064)5/3/2002 4:26:15 PM
From: mishedlo  Read Replies (1) of 99280
 
WASHINGTON (Dow Jones)-- Federal Reserve Chairman Alan Greenspan on Friday repeated his call for firms to expense stock options, saying firms' failure to do so has inflated earnings and stock prices.

"The seemingly narrow accounting matter of option expensing is, in fact, critically important for the accurate representation of corporate performance," Greenspan said in prepared remarks to the 2002 Financial Markets Conference in Atlanta.

"I fear that failure to expense stock option grants has introduced a
significant distortion in reported earnings - and one that has grown with the increasing prevalance of this form of compensation," he said.

There was no mention of economic or monetary policy in Greenspan's remarks.
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