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Technology Stocks : Novell (NOVL) dirt cheap, good buy? -- Ignore unavailable to you. Want to Upgrade?

To: Elmo Gregory who wrote (24543)	11/25/1998 4:58:00 PM
From: Exacctnt	Read Replies (2) \| Respond to of 42771

Elmo, If I remember my accounting correctly, primary earnings per share are calculated with shares that include granted options that are in the money. While diluted shares include all options. Also, the shares in the calculation are averaged by quarter for the year, so it's a weighted average for both. So theoretically, if the stock rises during the year, primary and diluted share do not move in the same proportion. The other factors involve the current year granting of new options, old options that come into the money because of the rise in stock price, and those options that have been exercised with the issuance of common stock. Regards, Bob Edit: Of course the calculation is also affected by the share buyback and its timing.