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The common stock equivalency of liquid yield option notes: Some surprising results
Author(s) -
Schneider Douglas K.,
Wertheim Paul
Publication year - 1994
Publication title -
journal of corporate accounting and finance
Language(s) - English
Resource type - Journals
eISSN - 1097-0053
pISSN - 1044-8136
DOI - 10.1002/jcaf.3970050405
Subject(s) - stock (firearms) , yield (engineering) , stock options , earnings , common stock , earnings yield , economics , econometrics , accounting , earnings per share , engineering , finance , price–earnings ratio , history , thermodynamics , physics , mechanical engineering , context (archaeology) , archaeology
Surprisingly, few liquid yield option notes (LYONs) meet the SFAS 85 definition of a common stock equivalent. That has important reporting implications on primary earnings per share. Current accounting standards may not do an adequate job of identifying the common stock equivalency status of LYONs.