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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Paul Ma who wrote (108602)	4/30/2000 7:16:00 PM
From: tejek	Read Replies (1) \| Respond to of 1571141

Sorry Brushwud, I thought there were 250 million shares +some extra option shares, thus 750/(250+x) would not equal 3. Can you also explain to me outstanding and floated shares? One of them is the number of shares currently held by investors, but I don't know which one. Paul Ma, In the case of AMD, there are several different categories for its stock...... Shares authorized =s 250 million. Diluted shares (including optionable shares etc) =s 172 million. Outstanding shares =s 150 million. AMD's float =s the number of outstanding shares minus those owned by institutions and funds that are available to trade on a daily basis. ted

To: Paul Ma who wrote (108602)	5/1/2000 1:39:00 PM
From: brushwud	Respond to of 1571141

I thought there were 250 million shares +some extra option shares... First of all, the number of shares outstanding & the fully diluted number of shares change daily, if not hourly. In Silicon Valley, most engineers & managers get stock options at most companies. If one started work at AMD on May 1, 1999, and got a 1000 share option vesting in annual increments over four years, then 250 shares will have vested as of today, so AMD's fully diluted number of shares would increase by 250 today. Next, if he or she chose to exercise 100 of those shares at 11 am PDT, then AMD's number of shares outstanding would increase by 100 at that time. The figures reported in financial statements are weighted averages of the daily balances during the period. As a consequence, if the numbers are increasing (as they usually are), then the total at the end of any quarter will be greater than the average reported in the financial statements for that period. That means that the 152 million/172 million figures in AMD's Q1 report are very likely greater than that already. Finally, regarding "authorized" shares: this is a ceiling over all shares, whether outstanding or reserved for issuance under a variety of option plans or the Subordinated Notes or the like. In AMD's case, there are shares reserved for issuance through the Employee Stock Purchase Plan, through an option plan for directors, and through at least one options plan for employees, plus the Subordinated Notes are convertible into shares at a price of $37, so we can assume they will all convert someday. Can you also explain to me outstanding and floated shares? One of them is the number of shares currently held by investors, but I don't know which one. They're all held by investors (or speculators!) aren't they? I'm not sure exactly what is meant by "float", but I don't think it includes shares held by insiders and maybe also by institutions. I think the idea is that those owners are holding, not trading, so the number of shares available for trading is whatever is left. Then smaller float translates to greater volatility.