Timeline for Effect of company issued options on share price
Current License: CC BY-SA 3.0
6 events
| when toggle format | what | by | license | comment | |
|---|---|---|---|---|---|
| Sep 28, 2016 at 1:55 | history | bounty ended | kravits88 | ||
| Sep 28, 2016 at 0:57 | vote | accept | kravits88 | ||
| Sep 28, 2016 at 1:55 | |||||
| Sep 28, 2016 at 0:56 | comment | added | kravits88 | Thanks, you helped me get to what I wanted. I found some formulas here highered.mheducation.com/sites/dl/free/0078034760/977783/… | |
| Sep 23, 2016 at 4:16 | comment | added | davmp | So then ignore everything I said. :-) From reading your link and this one (theaustralian.com.au/business/opinion/tim-boreham-criterion/…) I still get the feeling the stock backing the options exists at the IPO time, it just isn't sold as part of the float, and stays owned by the company until options are exercised. Thus why no mention made of actual dilution on exercise. Instead, powerful entities are motivated to keep price down for best option prices until exercise time though. | |
| Sep 23, 2016 at 3:25 | comment | added | kravits88 | Thanks for the detailed answer davmp. This is in Australia where this practice is common with IPOs. I am under the impression the company does not set shares aside for the options but rather creates new ones and adds the cost paid to their working capital when the option is executed. Here's an example of what I mean: cmcmarkets.com/en-au/stockbroking/closed-ipos/pm-capital | |
| Sep 23, 2016 at 2:43 | history | answered | davmp | CC BY-SA 3.0 |