posted
So i've recently delved into the world of stocks and have been doing really well but have some questions. I'm using LOW (Lowes) as an example. (not a stock i own or even plan on owning).
anyway, in one section of their sec report under shareholder equity they state a shareholder repurchase of $5.2 mil common shares during the first six months of fiscal 2005. How is this possible when their Jan '05 volume was less then 5 mil and is currently ~4 mil? I know shares outstanding is something like 779 mil but where do they buy the stocks from if not from the float?
another question is about this statement:
quote: In December 2004, the Financial Accounting Standards Board issued SFAS No. 123 (revised) "Share-Based Payment." This statement eliminates the alternative to account for share-based compensation transactions using APB Opinion No. 25 and will require that compensation expense be measured based on the grant-date fair value of the award and recognized over the requisite service period for awards that vest. SFAS No. 123 (revised) will also require a change in the classification of the benefits of tax deductions in excess of recognized compensation cost to financing rather than operating cash flows.
What does it mean to "...eliminates the alternative to account for share-based compensation transactions..."
anyway, thanks for any help. all of this stock dd is becoming more and more clear but this time i'm having trouble figuring it out myself.
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posted
you state 5 million shares DURING 6 MONTHS so that would be not problem. and you have a $ sign. is it dollars or shares? the second part just refers to accounting for paying employess with shares, usually as a bonus. companies now have to account for it in a certain way. its essentially of no relevence. pennies however tend to pay for everything with shares since they have no cash and that caused massive dilution. but thats another story
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posted
i meant shares. but thanks i see what you mean about the 6 month period. I wasn't laying enough importance on that fact. as for the second part that makes sense now...i just couldn't figure out what they were referring to. thanks for clearing everything up.
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