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Technology Stocks : Altaba Inc. (formerly Yahoo) -- Ignore unavailable to you. Want to Upgrade?

To: Michael Collings who wrote (11917)	7/7/1998 8:36:00 PM
From: don pagach	Read Replies (1) \| Respond to of 27307

Micheal, to calculate diluted shares outstanding accountants assume the following, all options are issued at the exercise price and the company uses the money received from shareholders to buy back shares for the treasury. For example, if a comp. had 100 options outstanding at an exercise price of $10 and the average market price of the company's stock during the year was $40, The company would issue 100 shares to option holders and receive $1,000 ($10100options), the comp. could buy back 25 shares ($1,000/$40 aver. price), the net increase in shares out. is 75. Short cut #of options [(Mkt. price - exercise price) / Mkt. price] In Yahoo's case because the acct is using the average market price it understates the effect of the stock options. Hope this helps!!