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 : CYRIX / NSM -- Ignore unavailable to you. Want to Upgrade?

To: Frank who wrote (28423)	7/21/1998 12:41:00 PM
From: Joe NYC	Read Replies (1) \| Respond to of 33344

Frank, Re: Upside article As long as shareholders are aware that a certain number of reserved option shares may be sold on the public market--and possibly drive down the stock's price--no financial reporting problem exists. But what if I as an investor have a problem with my ownership percentage of company constantly shrinking? A more prudent company (like Intel), it will buy back the shares, to avoid dilution, but the wealth is transferred from the balance sheet to the employees. The zero-sum, double-entry mind-set that controls the thinking of FASB and Machine Age politicians cannot cope with the positive-sum, wealth-creating economics of Information Age capitalism. They simply cannot understand that new wealth comes out of no one's pocket; that there can indeed be benefit without cost, income without expense. I am not sure if anoyone seriously believes this alchemy. The bottom line is: it is a zero sum game. No magic. The investor either ends up with diluted shares, or the money disappears from the balance sheet. Joe