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Technology Stocks : Son of SAN - Storage Networking Technologies -- Ignore unavailable to you. Want to Upgrade?

To: andydaoust who wrote (4417)	2/18/2002 9:31:26 PM
From: D. K. G.	Read Replies (2) \| Respond to of 4808

Hi andydaoust, the crux of the argument is that options are a form of compensation like wages and should be considered as an expense. The holder does have to pay when the option is exercised and many companies report it as income. There is an opportunity cost to the company as it gives up the difference in the exercised and actual share price upon conversion to the grantee. The diluted shares outstanding includes the total options granted as if they were converted to shares. That's to the best of my understanding. I hope I'm not misinforming you. regards, DKG