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View Full Version : Stock Options now expensed


scifos
12-17-2004, 04:05 PM
http://www.ecommercetimes.com/story/FASB-Stock-Options-Must-Be-Expensed-39061.html

Any comment on what this will to to tech companies?

Yahoo would have a P/E of something in the 700's I hear.

Dave
12-17-2004, 04:43 PM
It certainly looks ominous, but tech companies are not the only ones that dole out huge options. I also think that most people will simply look at earings a bit differently. You could just look at a 10Q and adjust earnings based on options expenses. What it really appears to do is bring to light for the average, lazy investor, the amount of money options cost the companies.

-Dave

scifos
12-17-2004, 05:12 PM
Yeah, but the average, lazy investor probably won't understand that, although the numbers have changed, its basically the same financial situation. I think thats the most commas I've ever used in a sentance.