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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 (16413)	8/5/2002 7:56:02 PM
From: Don Lloyd	Read Replies (1) \| Respond to of 42834

SB, don, so a company that pays all expenses with stock can report all revenues as profits? Why not? If the company pays $10,000 cash as an expense, or if it pays out $10,000 in market value stock only as dilution, the resulting injury to the shareholder's liquidation value is exactly the same in either case, at the time of the payment. One case will predominate over the other over time as the stock goes up or down. And the cases differ in terms of which party takes on how much risk. Regards, Don