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Technology Stocks : Qualcomm Incorporated (QCOM)
QCOM 166.81-4.1%Nov 17 3:59 PM EST

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To: Stock Farmer who wrote (119060)5/21/2002 3:54:45 AM
From: Peter J Hudson  Read Replies (1) of 152472
 
John,

The cost to existing shareholders of employee options is dilution. The actual $ cost to shareholders is the reduction in market price per share caused by this dilution. Regardless how much the employee option holder realizes at exercise, there is no cost to the shareholder unless there is a decrease in market price. The market should reduce the share price by a percentage equal to the dilution.

Do you agree that the only way to measure actual cost to shareholders is effect on share price?
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