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Strategies & Market Trends : Zeev's Turnips - No Politics

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To: mishedlo who wrote (96505)7/20/2002 8:13:19 PM
From: Joe Smith  Read Replies (2) of 99280
 
As a beneficiary of stock options I have a soft spot in my heart for them and perhaps my head. I do not understand why they should be expensed. current GAAP accounts for them through dilution. When a company does its quarterly report it must account for all option shares that are in the money. Why is this not good enough? When companies do secondary offerings, should they be considered expenses? Stock options seem to me to be just that. They do not affect cash flow. They just increase the number of outstanding shares which does effect earnings.

As I said< I have a soft spot for them. Is it in my head? Please explain what is so crazy about the current accounting principles.

Thanks
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