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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Chuzzlewit who wrote (138081)	7/29/1999 8:23:00 PM
From: Richard Forsythe	Read Replies (1) \| Respond to of 176387

Oh I see what you mean. How would you charge the P&L for the effect of dilution? Black-sholes isn't appropriate, I don't think. In one sense it is clear, because the "basic" EPS does not account for options, whereas the "diluted" EPS does. So the difference is roughly caused by options. Also, most tech companies offer stock purchase plans -- buy stock at 85% of market price six months ago. It's a good "bonus", but suffers from the same issue as options -- it dilutes the stock. How should one account for that, I wonder? Richard

To: Chuzzlewit who wrote (138081)	7/29/1999 9:36:00 PM
From: DellFan	Read Replies (1) \| Respond to of 176387

Chuzz - nobody is hiding the cost. The question is whether a guessed-at value should be included in the financial statements. Or do you suggest that they wait until the value is known (i.e. when exercise occurs). I am against "fair value" accounting (see my post to Freeus). I've seen it before and it does not work. And I think waiting until exercise to record the expense is too late. Message 10718429 Not everything belongs in financial statements, you know. Particularly when those things are based on appraised or otherwise estimated and unreliable values.