Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Michael Bakunin who wrote (69776)	10/29/1999 3:08:00 PM
From: Don Lloyd	Read Replies (1) \| Respond to of 132070

mb - (...Nevertheless, the idea that options have zero cost seems, at best, counterintuitive...) I agree with counterintuitive, but that doesn't rule it out. When a company is audited, the assets and liabilities are counted up for the company as a whole, and do not depend on either how many shares or how many shareholders are outstanding. When we look at EPS, my claim is that 'E' and 'S' should not be unnecessarily commingled. Real economic costs will affect 'E', and real share dilution should affect 'S'. Option grants will only affect 'S' (other than the positive effect of foregone salary), unless and until the shares are repurchased. But there is no reason to distinguish between the possible reasons for a given share repurchase, which must be justified on its own merits. Regards, Don