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

To: Biomaven who wrote (124)	7/3/2002 10:34:31 PM
From: hueyone	Respond to of 786

Individual investors are free to include option expenses in earnings if they wish. Yes they are free to do this, but my guess is that 99.9% of them don't do this and don't know where to find the option expenses. And because of this, I have to agree with Alan Greenspan that a lot of capital has been flowing to undeserving companies where investors are fooled by overstated earnings. The Fed Chairman used that clout in telling Congress earlier this month that stock-option expensing was his top post-Enron reform priority. "I do not deny that earnings would be lower if you expensed them," he said. "I do not deny that there may be greater difficulty in attracting capital ... ," he added. But he suggested that the extra capital many companies attracted with earnings reports that failed to reflect the cost of stock options was probably money they didn't deserve anyway. online.wsj.com Huey