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 : America On-Line: will it survive ...? -- Ignore unavailable to you. Want to Upgrade?

To: Keith A Walker who wrote (9923)	5/7/1998 1:11:00 PM
From: Paul W	Read Replies (3) \| Respond to of 13594

Run shorts run fast and far!!

To: Keith A Walker who wrote (9923)	5/7/1998 3:16:00 PM
From: Raymond	Read Replies (1) \| Respond to of 13594

Keith: The company does not pay cash when an employee exercises ISO; instead it issues more shares. The EPS takes in account these extra shares already. This is why there are two EPS numbers, one being basic, and the other diluted. The diluted number uses a total number of shares that include all posssible dilution from IN-THE-MONEY ISO, non-statutory stock options, convertibles, etc. Because of the in-the-money qualifier, some times you see the share count drops as stock price drops. Raymond ---------------- >AOL, among others (including MSFT) could be seriously impacted if the options that have been granted are exercised at the same time. Microsoft would actually have to come up with over $10 billion in cash.