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

To: Boca_PETE who wrote (61001)	5/3/2002 9:18:42 AM
From: DebtBomb	Read Replies (1) \| Respond to of 99280

Greenspan is right, IMHO, I hope Washington changes it. We would have a better marketplace, IMO.

To: Boca_PETE who wrote (61001)	5/3/2002 9:38:20 AM
From: Casaubon	Read Replies (1) \| Respond to of 99280

what's actually needed is a better disclosure of the dilution of the earnings pool from stock issued under company stock option plans ummm...that's already done. the only thing that needs to be done is a common sense way of expensing options grants. Options have no inherent value when issued. Therefore, the only value they have is a time value premium. This is what needs to be expensed. The dilution to earnings is easy to calculate based on the number of outstanding options.

To: Boca_PETE who wrote (61001)	5/4/2002 12:51:45 AM
From: Don Lloyd	Respond to of 99280

Pete - Greenspan, an economist, making stock option accounting rules - just what investors need?... The idea of expensing stock options is even a worse economic idea than it is an accounting one. At least in accounting, a certain amount of unreality is probably necessary, whereas economics is supposed to be a science. Virtually all of the arguments that are used to support option expensing are based on economic fallacies, widely held fallacies, but fallacies none-the-less. Do you know how pure stock grants are currently accounted for? Logic demands that the treatment of stocks and stock options cannot diverge indefinitely, and must ultimately converge. If an inventor/owner of a company gives a manager/partner half of his company, the logic(?) of option expensing would seem to demand that the owner enter an accounting expense of half of the market value of his company in addition to now owning only half of the company. However, if Warren Buffet were to bid on the total company, he not only would ignore this expense, but would likely bid more for a better organized business. Regards, Don