Table of Contents MARKETAXESS HOLDINGS INC.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) (in thousands, except share and per share amounts) The following tables summarize information regarding the warrants:
## Table 0 ##
In calculating the fair market value of the warrant allocations, the following assumptions were used:
## Table 1 ##
Warrant-related expense is accrued quarterly based on the pro-rated number of shares to be allocated under the warrant program and the fair market value of the Company’s common stock.
For the years ended December 31, 2004, 2003 and 2002, the Company accrued for 229,169, 1,048,612 and 2,347,222 shares at a weighted average fair market value of $16.52, $5.15, and $3.68, respectively.
Broker-Dealer Stock Options During 2001 and 2002, the Company had a broker-dealer option program.
The broker-dealer clients that were party to this plan were ABN Amro, Banc of America, Bear Stearns, JPMorgan, Credit Suisse First Boston, Deutsche Bank, Lehman Brothers and UBS.
The options were allocated to these eight broker-dealer clients on a quarterly basis from February 1, 2001 through January 2002 at an exercise price of $12.60 per share.
Allocation of the options among the eight broker-dealer clients was based on a predetermined formula, which measured each broker-dealer’s share of commissions paid to the Company for that three-month period compared to the total commissions paid to the Company by the eight broker-dealer clients for such period.
As of December 31, 2002, there were outstanding 198,407 options expiring one year from the issuance date.
All options that were allocated in 2001, totaling 287,811, expired during 2002.
The options allocated in 2002, totaling 198,407, expired on January 31, 2003.
The Company did not record any expense as the fair value of the Company’s common stock was below the strike price on each of the allocation dates.
Stock Option Plans The Company’s 2000 and 2001 Stock Incentive Plans (the “2000 and 2001 Plans”) provide for the grant of options or restricted stock as incentives and rewards to encourage employees, officers and directors to participate in the long-term success of the Company.
The 2000 and 2001 Plans provide for the granting of up to 5,082,274 shares of the Company’s common stock at the fair value or at a value other than fair value (determined by the Board of Directors or a committee thereof) on the date the option is granted.
The options vest over a three-year period, at a rate of one-third after one year from the grant date and with the remaining two-thirds vesting on an equal monthly basis over the remaining two-year period.
Options expire ten years from the date of grant.
For the year ended December 31, 2003, options to purchase 1,443,350 shares of common stock were granted, options to purchase 471,891 shares of common stock were cancelled and 18,334 options to purchase shares of common stock were exercised.
For the year ended December 31, 2004, options to
Table of Contents Other.
Other income decreased to $0 for the year ended December 31, 2003 from $1.2 million for the comparable period in 2002.
This decrease was due to the nonrecurring insurance settlement of $1.2 million received in 2002.
Our expenses and percentage of revenues for the years ended December 31, 2003 and 2002, and the resulting dollar and percentage change, are as follows:
## Table 2 ##
Employee Compensation and Benefits.
Employee compensation and benefits expense increased by $2.6 million or 10.6% to $26.9 million for the year ended December 31, 2003 from $24.3 million for the year ended December 31, 2002.
This increase was primarily due to the addition of new employees to support our growth, Moneyline consultant staff that became our full-time employees and an increase in performance-based bonuses.
Total employees increased to 160 as of December 31, 2003, from 133 as of December 31, 2002.
As a percentage of total revenues, employee compensation and benefits expense decreased to 45.9% for the year ended December 31, 2003 from 129.9% for the year ended December 31, 2002.
We expect this expense to continue to decline as a percentage of total revenues as we continue to grow our business.
Depreciation and Amortization.
Depreciation and amortization expense decreased by $2.0 million or 29.6% to $4.7 million for the year ended December 31, 2003 from $6.7 million for the year ended December 31, 2002.
This decrease was primarily due to the fact that $8.5 million of our fixed assets became fully depreciated during 2003.
As a percentage of total revenues, depreciation and amortization expense decreased to 8.0% for the year ended December 31, 2003 from 35.6% for the year ended December 31, 2002.
Technology and Communications.
Technology and communications expense increased by $0.8 million or 20.6% to $4.8 million for the year ended December 31, 2003 from $3.9 million for the year ended December 31, 2002.
This increase was primarily due to the additional costs relating to licenses, maintenance, production data feeds and hosting, all associated with the growth in volume traded on our platform.
As a percentage of total revenues, technology and communications expense decreased to 8.1% for the year ended December 31, 2003 from 21.1% for the year ended December 31, 2002.
Professional and Consulting Fees.
Professional and consulting fees decreased by $0.5 million or 11.0% to $4.2 million for the year ended December 31, 2003 from $4.7 million for the year ended December 31, 2002.
This decrease was primarily due to the fact that certain Moneyline consultant staff became our full-time employees in May 2003.
As a percentage of total revenues, professional and consulting fees decreased to 7.2% for the year ended December 31, 2003 from 25.1% for the year ended December 31, 2002.
MARKETAXESS HOLDINGS INC.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) (in thousands, except share and per share amounts) The combined aggregate amount of redemption requirements for the Senior Preferred Shares was as follows:
## Table 3 ##
Convertible Preferred Stock Shares of Series B Convertible Preferred Stock were convertible into common stock on a 3.33-for-one basis and only in connection with an initial public offering of the Company’s stock.
Dividends on the Series B Convertible Preferred Stock accrued at the rate of 8% per annum and were subordinate to dividend payments on the Senior Preferred Shares.
Shares of Series B Convertible Preferred Stock had a liquidation preference equal to the original issue price plus all cumulative accrued but unpaid dividends.
The liquidation preference was subordinate to that of the Senior Preferred Shares.
Cumulative accrued but unpaid dividends were forfeited upon conversion of shares of Series B Convertible Preferred Stock into common stock.
As such, the Company did not accrue dividends, as liquidation of the shares of Series B Convertible Preferred Stock was not anticipated.9.
Stockholders’ Equity (Deficit) Common Stock As of December 31, 2004, the Company had 110,000,000 authorized shares of common stock and 10,000,000 authorized shares of non-voting common stock.
As of December 31, 2003, the Company had 120,000,000 authorized shares of common stock and 450,060 authorized shares of non-voting common stock.
Common stock entitles the holder to one vote per share of common stock held.
Non-voting common stock is convertible on a one-for-one basis into shares of common stock at any time subject to a limitation on conversion to the extent such conversion would result in a stockholder, together with its affiliates, owning more than 9.99% of the outstanding shares of common stock.
On March 30, 2004, the Company’s Board of Directors authorized, and on November 1, 2004 the Company effectuated, a one-for-three reverse stock split of shares of common stock and non-voting common stock to be effective prior to the closing of the Company’s initial public offering.
All references in these financial statements to the number of shares of common stock and non-voting common stock of the Company, securities convertible or exercisable therefor and per share amounts have been restated for all periods presented to reflect the effect of the common stock reverse stock split.
Restricted Common Stock and Common Stock Subscribed In 2004 and 2003, the Company had 1,939,734 shares and 1,937,141 shares, respectively, of common stock that were issued to employees.
Included in these amounts, in 2001, the Company awarded 64,001 shares and 289,581 shares to employees at $.003 and $3.60, respectively, per share.
The common stock subscribed was issued in 2001 in exchange for three-year promissory notes (64,001 shares) and eleven-year promissory notes (289,581 shares), which bear interest at the applicable federal rate and are collateralized by the subscribed shares.
The promissory note due in 2004 was repaid on January 15, 2005.
Compensation expense in relation to the excess of the fair value of such awards over the amount paid will be recorded over the vesting period.
The awards vest over a period of either one and one-half or three years and are restricted as to transferability based on the vesting schedule set forth in the award agreement.
The eleven-year promissory notes (289,581 shares) were entered into in connection with the loans of approximately $1,042 made to the Company’s Chief Executive Officer in 2001.
These loans were made prior to the passage of the Sarbanes-Oxley Act of 2002.

<table><tr><td></td><td colspan="2"> As of December 31, 2004</td></tr><tr><td> Exercise Price</td><td> Shares of Common  Stock Issuable upon  Exercise of  Outstanding  Warrants</td><td> Weighted-Average  Remaining  Contractual Life  (In Years)</td></tr><tr><td>$130.65</td><td>7,967</td><td>0.6</td></tr><tr><td>$ 0.003</td><td>5,000,002</td><td>3.9</td></tr></table>
<table><tr><td></td><td>2004</td><td>2003</td><td> 2002</td></tr><tr><td>Weighted Average Allocation Date Fair Market Value of Common Stock</td><td>$16.52</td><td>$5.15</td><td>$3.68</td></tr><tr><td>Dividend Yield</td><td>0.00%</td><td>0.00%</td><td>0.00%</td></tr><tr><td>Weighted Average Expected Life (years)</td><td>4.38</td><td>5.38</td><td>6.38</td></tr><tr><td>Weighted Average Risk Free Interest Rate</td><td>2.18%</td><td>1.84%</td><td>2.96%</td></tr><tr><td>Expected Volatility</td><td>34.43%</td><td>40.28%</td><td>46.78%</td></tr></table>
<table><tr><td></td><td colspan="4">Year Ended December 31,</td><td></td><td></td></tr><tr><td></td><td colspan="2">2003</td><td colspan="2">2002</td><td></td><td></td></tr><tr><td></td><td> $</td><td>% of Revenues</td><td>$</td><td>% of Revenues</td><td>$ Change</td><td>% Change</td></tr><tr><td></td><td colspan="6">($ in thousands)</td></tr><tr><td> Expenses</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Employee compensation and benefits</td><td>$26,860</td><td>45.9%</td><td>$24,290</td><td>129.9%</td><td>$2,570</td><td>10.6%</td></tr><tr><td>Depreciation and amortization</td><td>4,688</td><td>8.0</td><td>6,658</td><td>35.6</td><td>-1,970</td><td>-29.6</td></tr><tr><td>Technology and communications</td><td>4,755</td><td>8.1</td><td>3,943</td><td>21.1</td><td>812</td><td>20.6</td></tr><tr><td>Professional and consulting fees</td><td>4,180</td><td>7.2</td><td>4,699</td><td>25.1</td><td>-518</td><td>-11.0</td></tr><tr><td>Warrant-related expense</td><td>5,400</td><td>9.2</td><td>8,624</td><td>46.1</td><td>-3,224</td><td>-37.4</td></tr><tr><td>Marketing and advertising</td><td>2,292</td><td>3.9</td><td>2,588</td><td>13.8</td><td>-297</td><td>-11.5</td></tr><tr><td>Moneyline revenue share</td><td>1,806</td><td>3.1</td><td>708</td><td>3.8</td><td>1,098</td><td>155.2</td></tr><tr><td>Restructuring charges</td><td>—</td><td>0.0</td><td>-674</td><td>-3.6</td><td>674</td><td>-100.0</td></tr><tr><td>General and administrative</td><td>4,077</td><td>7.0</td><td>3,941</td><td>21.1</td><td>136</td><td>3.5</td></tr><tr><td> Total expenses</td><td>$54,058</td><td>92.4%</td><td>$54,777</td><td>292.9%</td><td>$-719</td><td>-1.3%</td></tr></table>
<table><tr><td></td><td>As of December 31,</td></tr><tr><td>Year Ended December 31,</td><td>2004</td><td>2003</td></tr><tr><td>2005</td><td>$—</td><td>$177,973</td></tr></table>

Question: as of december 31 , 2004 , what percentage of common stock outstanding were non-voting shares?
Answer: 0.08333