Fluctuations in our operating results may negatively impact our stock price. Stock option exercises, share repurchases, and other factors  may create volatility in our cash flows. The future sale of shares of our common stock may negatively  impact our stock price. Item 1B. Unresolved Staff Comments Our shareholders may experience dilution in their ownership positions. Morningstar, Inc. 2010 Annual Report 53 We do not have any unresolved comments from the Staff of the  Securities and Exchange Commission regarding our periodic or cur- rent reports under the Exchange Act. In the past, we’ve granted options to employees as a significant  part of their overall compensation package. In 2006, we began grant- ing restricted stock units to our employees and non-employee direc- tors. As of December 31, 2010, our employees and non-employee  directors held options to acquire 1,856,425 shares of common stock,  all of which were exercisable at a weighted average price of approx- imately $17.73 per share. As of December 31, 2010, there were  822,855 restricted stock units outstanding, which have an average  remaining vesting period of 33 months. Generally speaking, the In addition, our board of directors has authorized a share repurchase  program allowing for the repurchase of up to $100 million of our  outstanding common stock. We may repurchase shares from time  to time at prevailing market prices on the open market or in private  transactions in amounts that management deems appropriate.  Changes in the amount of repurchase activity from period to period  may also cause volatility in our cash flows. If our shareholders sell substantial amounts of our common stock,  the market price of our common stock could fall. A reduction in  ownership by Joe Mansueto or any other large shareholder could  cause the market price of our common stock to fall. In addition, the  average daily trading volume in our stock is relatively low. The lack  of trading activity in our stock may lead to greater fluctuations in  our stock price. Low trading volume may also make it difficult for  shareholders to make transactions in a timely fashion. Part of our cash provided by financing activities consists of proceeds  from stock option exercises and excess tax benefits related to stock  option exercises and vesting of restricted stock units. Excess tax  benefits occur at the time a stock option is exercised if the intrinsic  value of the option (the difference between the exercise price of  the option and the fair value of our stock on the date of exercise)  exceeds the fair value of the option at the time of grant. Similarly,  excess tax benefits are generated upon vesting of restricted stock  units when the market value of our common stock at vesting is  greater than the grant price of the restricted stock units. These  excess tax benefits reduce the cash we pay for income taxes in the  year they are recognized. It is not possible to predict the timing of  stock option exercises or the intrinsic value that will be realized.  Because of this uncertainty, there may be additional volatility in our  cash flows from financing activities. We believe our business has relatively large fixed costs and low  variable costs, which magnify the impact of revenue fluctuations  on our operating results. As a result, a decline in our revenue may  lead to a larger decline in operating income. A substantial portion  of our operating expense is related to personnel costs, marketing  programs, office leases, and other infrastructure spending, which  generally cannot be adjusted quickly. Our operating expense levels  are based on our expectations for future revenue. If actual revenue  falls below our expectations, or if our expenses increase before  revenues do, our operating results would be materially and adversely  affected. In addition, we do not provide earnings guidance or hold  one-on-one meetings with institutional investors and research ana- lysts. Because of this policy and limited analyst coverage on our  stock, our stock price may be volatile. If our operating results or  other operating metrics fail to meet the expectations of outside  research analysts and investors, the market price of our common  stock may decline. company issues a share of stock when a restricted stock unit vests.  To the extent that option holders exercise outstanding options to purchase common stock and shares are issued when restricted  stock units vest, there will be further dilution. Future grants of stock  options or restricted stock units may also result in dilution. We may raise additional funds through future sales of our common  stock. Any such financing would result in additional dilution to our shareholders.