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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Geoff Nunn who wrote (41246)	5/10/1998 8:12:00 PM
From: Chuzzlewit	Respond to of 176387

Geoff, I've seen similar stuff in the past. Remember, they said if they charged ... . Stock transactions don't affect the income statement. From an accounting point of view, stock repurchases are debits to "treasury" and credit to cash, but when stock is issued it never comes out of treasury. Without reading the article I can't comment specifically, but it seems to me that the theoretical "loss" is that high because of the rapid increase in Dell's share price. As you pointed out, Dell also makes aggressive use of futures for these stock options. The stock market sees through this because the only applicable numbers are "fully diluted shares", which gives effect to these options. I agree, we should have this stuff accounted for in a more straight-forward manner. I don't know enough about taxes to answer your last question. Sorry. TTFN, CTC