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To: Uncle Frank who wrote (347)8/8/2002 12:40:49 PM
From: TimbaBear  Respond to of 562
 
Frank

... my limited knowledge of accounting methodology invalidates any conclusions I might reach through logic.

Valid logic has a better chance to flow to valid conclusions when valid premises are the starting point. Generally, education allows for more valid premises to be acknowledged.

I see dilution as an important but seperate issue. Imo, it is an "expense" for the stockholders, not the company

We are close to agreement here, however I see the dilution as the result of an expense to the company that the company has "pawned off" onto the shareholders in an attempt to justify higher option awards to management because the earnings look much better than they should. Either way, the shareholder is screwed, either by owning a company that is no where near as profitable as they were led to believe it was, or by owning less of the company than they thought they had purchased.

I, too, will retreat...in my case, to "lurking". I have no bone to pick.

Timba



To: Uncle Frank who wrote (347)8/8/2002 1:36:58 PM
From: Tom Chwojko-Frank  Read Replies (1) | Respond to of 562
 
I hope this is a straightforward question: How are stock grants accounted for?

That is, suppose a company decides simply to print a million shares and give it to management, thereby diluting the individual shares. Where does that show up on a 10K/10Q?

Tom CF