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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Hawkmoon who wrote (6124)	5/18/2002 7:47:56 PM
From: Enigma	Read Replies (2) \| Respond to of 33421

I've been trying to get an answer to this but can't - how do you suppose options can be expensed? At the moment an option is a non event until exercised, whereupon cash is debited and issued share capital is credited, the income statement is not affected. This is a balance sheet transaction in it's entirity. How, then, can an option be considered an expense item, and bear in mind that some options are never exercised? What is the difference between a share issue and an option issue?