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Strategies & Market Trends : Employee Stock Options - NQSOs & ISOs -- Ignore unavailable to you. Want to Upgrade?

To: Biomaven who wrote (108)	6/21/2002 1:09:43 PM
From: rkral	Respond to of 786

Options whose strike price is equal to the average stock price for the quarter are a wash - neither dilutive nor anti-dilutive. (From an earlier post) Hi Peter, Wouldn't the stock price on the exercise date ALSO need to be equal to the average stock price for the quarter? (Strictly speaking.) >>From an investment perspective, the biggest distortion in FAS 128 is that diluted shares are only calculated for companies that are profitable on an operating basis.<< LOL! I'm picturing this poor ... operating-at-a-loss company ... not having enough money to calculate the diluted shares. Seriously, do you see anything wrong with, or difficult about, companies reporting the total number of diluted shares, or just the additional dilution shares .. regardless of profit or loss? The diluted EPS could continue to be reported as now, i.e, a negative diluted EPS would not be reported. Ron