Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?

To: Oeconomicus who wrote (145385)	8/13/2002 4:11:46 PM
From: GST	Read Replies (1) \| Respond to of 164684

I read "per share" to mean "per share". But lets assume that it refers to the option itself -- that would mean that, at an average issuance of about 275 million option shares per year, you would have an expense of $13 x 275 million, $19 x 275 million and $8 x 275 million = $11 billion of unaccounted expenses. That is still in excess of the amount that WCOM is being punished for hiding from its shareholders.

To: Oeconomicus who wrote (145385)	8/13/2002 4:57:50 PM
From: GST	Respond to of 164684

The current system is an irrelevant shambles. A new system will emerge soon enough: "Goldman did not disclose the move's potential impact on its earnings. It said its decision was part of a broader move by a group of top financial institutions -- known as the Financial Services Forum -- to rebuild public trust in financial and corporate institutions and practices. Goldman and the forum was calling on regulators and accountants to quickly set uniform and accurate methods to value stock options. The lack of a standardized way to value options has made many chief executives wary of treating them as expenses. Goldman's stock rose $1 to $76.35 in early New York Stock Exchange trading. The company said it would start expensing options next year. Critics allege that corporate America's failure to log options as a cost makes profits appear higher than they actually are." biz.yahoo.com