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Technology Stocks : Qualcomm Incorporated (QCOM)
QCOM 172.02+0.8%11:12 AM EST

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To: freeus who wrote (77784)7/25/2000 8:51:10 PM
From: Jon Koplik  Read Replies (2) of 152472
 
Re : options retaining ownership interest in stuff (or not).

I think the theory behind what the O.C.C. (Options Clearing Corp.) (the entity really behind all listed options trading in the U.S.) is trying to do for options holders ...

when they (the O.C.C.) decide that a situation like QCOM spinning off 1/4 of a share of Leap Wireless (or X shares of "Qualcomm Spinco Inc.") should leave the options owners "whole"

whereas ... in the case of a simple cash dividend, the option holders miss the cash dividend

Is ... the percentage ownership interest in pieces of a corporation will only remain the same if the O.C.C. grants options holders rights to spin-offs.

(Cash dividends do not affect ownership interests).

(I apologize for not writing this more clearly).

Jon.
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