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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 231.69+1.7%3:59 PM EST

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To: Glenn D. Rudolph who wrote (4415)5/17/1998 1:26:00 PM
From: Jan Crawley  Read Replies (2) of 164684
 
Glenn, the following link comes from Dennis, Asnd thread.

Message 4489403

****Option exercises are accounted for in the Balance Sheet only.
They also show up in the Statement of Changes in Equity. The entry is Debit cash and credit common stock at par and additional paid-in capital for any difference. Thus, the effect is compensation without a corresponding expense in the Statement of Income. Yes, it does create dilution, in that additional shares are issues and outstanding. If the dilution is material it should have a corresponding decrease in market share price.****

Based on the above, as Amzn issues/exercises more options to insiders and on-going acquisitions, there are more shares to share the Losses; therefore creates a temporary illusion!!

I am sure that the big/smart money involved in Amzn currently knows the situation. Let's make sure that we know it too.

Am I correct?

Jan
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