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Non-Tech : Any info about Iomega (IOM)? -- Ignore unavailable to you. Want to Upgrade?

To: slipnsip who wrote (44041)	1/20/1998 12:07:00 AM
From: Gary Wisdom	Read Replies (5) \| Respond to of 58324

David, I will no longer respond to your questions re: dilution I encourage you to read up on the subject. No disrespect intended. But you need to spend some more time on education before you continue to badger us with the same question over and over. It doesn't matter where the share comes from. If they pay the same price that is the market price, it doesn't matter. Uh-oh, here I go again. Try this: Iomega has 100 shares outstanding at $12 each. That's a market cap of $1200. Assuming they never spent a dime and have no assets, shareholder's equity is $1200. Each share is worth exactly $12. Now, Dr. Iomega exercises options to buy 100 shares of authorized, but not issued, shares @ $12. That's additional paid in capital of $1200. Now, there's $2400 of shareholder's equity. And 200 shares issued. Per share value is now $12, exactly what it was before. How is that dilutive? However, if Dr. Iomega pays $6/share, total equity is now $1800 and each share is worth $9 instead of $12. That is dilutive to the earlier shareholders. Please, do not ask this question of me again. You may of course address it to anyone else you like. Try Rocky (on his thread). He is an expert on dilution.