Question on Stock compensations


Why are companies issuing Employee stock options or stock-based compensation included in their expenses? If the companies buy their shares directly from the market and issue them then ofc it's an expense/…but when companies issue those how are those expenses? Yes, it decreases shareholder's value…its share price might decrease if excessive dilution takes place…but how is it treated as an expense?


Comments

Leave a Reply

Your email address will not be published. Required fields are marked *