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To: Kevin McKenzie who wrote (553)10/28/1998 8:45:00 AM
From: Jan Crawley  Respond to of 7772
 
Can someone explain to me the difference between basic and diluted shares. Ebay's income statement shows basic shares of 15,423,000 and diluted shares of 37,168,000. Ebay currently has outstanding shares of 39,739,000.

In quick/general terms:
Basic shares = shares issued and outstanding. Which means actual issued shares that are owned by insiders and general public.

Diluted shares = basic shares + insiders/employees options, granted and can be exercised in the future



To: Kevin McKenzie who wrote (553)10/28/1998 9:02:00 AM
From: Jan Crawley  Respond to of 7772
 
FYI: per market guide.

Equity: Common Stock $.001 Par, 9/98, 195M auth., 39,739,073 issd. Insiders control approx. 87%. Initial Public Offering 9/23/98, 3.5M shares (3,489,275 by the Company) @$18 by Goldman, Sachs & Co. (As of 12/97) LTD: $545K @ variable rate, $18K in capital leases.

The 3.5 million shares via IPO is the current float. Which means the actual number of shares available for public trading. The general(or only) way to increase the float is via insiders sellings in the future.