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Technology Stocks : Apple Inc.
AAPL 272.52-0.7%12:12 PM EST
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To: Phillip C. Lee who wrote (11028)4/9/1998 1:29:00 PM
From: yofal  Read Replies (1) of 213176
 
Phil C Lee sez: 17m shares are a lot of money involved, do you know how they pick that amount rather than say 5m, 10m, and so on?

Making an assumption about human beings and their compensation, my guess is that someone would probably just asked for a nice, fat, round figure of oh, "let's say, 500million" (half a bil).

So working backwards from that and assuming an attainable share price of say 30 (another nice round number) you wind up with about 16.7 million shares. Rounded up to nearest whole number for good measure - 17mil.

All guessing I know, but assuming there are no real rules for compensation I would think this is a reasonable explanation of the process (if not the actual figures).

ML
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