Random Notes

-Employee stock options and warrants are a form of arbitrage.

-The exercising of company stock options by insiders results in dilution to the overall outstanding shares because it simply adds that many more shares to the public float while the proceed from the exercise go to insiders.

-Question: When a worker exercises his options are they sold in the public markets or do the proceeds of the sale come from the company's operations (income statement)?

-With the new FASB regulation mandating that employee stock options be expensed, does it mean that the proceeds resulting from the vesting (exercise) of the options be showing in the "Operating Expenses" section of the "Statement of Operation", and if so does this mean that previously they kept off the books altogether?