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Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host

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To: Kirk © who wrote (16359)8/2/2002 3:52:28 PM
From: sat2000  Read Replies (1) of 42834
 
I don't pretend to know beans about options or accounting. That being said I got a question. Why can't a standard method be adopted for all companies to treat employee stock options? Until this is done how can the average Joe six-pack investor evaluate various companies treatment of options? If one company agrees to expense them when exercised and another when granted and another not at all (as long as they can get away with it) how can a apples to apples comparison be made?

Would it work to require that when options are granted the company buys warrants or what ever is appropriate for the time frame, they at that time pay the premium and count that as an expense for that Quarter?

Steve Thompson
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