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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: LTK007 who wrote (60964)	5/3/2002 8:31:48 AM
From: LTK007	Read Replies (1) \| Respond to of 99280

Futures dropping on 6% unemployment number.Max

To: LTK007 who wrote (60964)	5/3/2002 9:15:18 AM
From: Boca_PETE	Read Replies (3) \| Respond to of 99280

Greenspan, an economist, making stock option accounting rules - just what investors need? money.cnn.com IMHO what's actually needed is a better disclosure of the dilution of the earnings pool from stock issued under company stock option plans (ie. Earnings per Share with and without such share issuances). Such a disclosure would highlight the reality from company options plans - Dilution of the earnings pool over a greater number of outstanding shares. Only then will real impact of stock option compensation and the companies that over use these plans be transparent. The optional Stock Option Expense that would be booked under current rules (SFAS 123) [ which 98% of companies choose to disclose in the footnotes to financial statements ] is a black box theoretical value that has nothing to do with company cash outflows for compensation expense. No cash or assets leave companies for stock option compensation - cash actually comes into the company when shares are issued upon option exercise. To book such an expense would understate earnings with an offset credit to capital surplus with no overall impact on stockholder equity - smoke and mirrors. For additional explanation, see Message 17074513 P