3Com Corporation (COMS) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : 3Com Corporation (COMS)

COMS 0.00130

0.0%

Nov 7 11:47 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Alan Levin who wrote (39273)	2/14/2000 10:32:00 AM
From: Alski	Read Replies (1) of 45548

Alan, No, it's not the same thing as an ordinary cash dividend. Option holders are not entitled to any ordinary cash dividends. A spin off (or split) represents a material change in the underlying security and as such, is not an ordinary dividend. The options will be adjusted accordingly. If a stock splits, even if the split is paid as a "dividend", covered call writers do NOT get to keep the new shares and still sell the original shares at the old, pre-split strike price. Just like shareholders don't have to pay income tax on the "dividend". Geez, how unfair would that be! Either the number of shares per contract or the strike price is adjusted per the split ratio. A spin off is the same thing (sort of). FWIW...Alski

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next