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Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host -- Ignore unavailable to you. Want to Upgrade?

To: Skeeter Bug who wrote (16408)	8/5/2002 4:15:44 PM
From: Don Lloyd	Read Replies (1) \| Respond to of 42834

SB, You didn't pay any attention to my discussion of the (non)significance of writing yourself an IOU. Stock that a company owns itself is in a peculiar state of existence and is equally meaningless until it is given away or sold. but if you choose to give it away to pay the electric bill.. is the electric bill no longer an expense that runs down the income statement? If an expense is paid in stock, that means that it is the shareholders that are effectively paying in dilution. After it is done, the shareholders are poorer by exactly the amount that the electric company is richer. If an additional expense is recorded, the shareholders are recorded as being poorer by twice the amount that the electric company is richer. Comparing costs of givers to rewards of receivers is not generally necessarily valid, but here it is indicative of reality. Regards, Don