SPARQS Would anyone care to discuss the ins and outs of Qualcomm SPARQS? I have not heard of them before. At first glance, they look to good to be true. I suppose the catch is that they can be called by the issuer. Comments?
biz.yahoo.com
Wednesday May 22, 3:06 pm Eastern Time
Press Release
SOURCE: The American Stock Exchange
Amex Lists SPARQS Linked to Qualcomm Inc.; New $39 Million Issue From Morgan Stanley Dean Witter Offers Investors Shares of Qualcomm Inc. Common Stock at Maturity
NEW YORK, May 22 /PRNewswire/ -- The American Stock Exchange® (Amex®) today began trading Morgan Stanley Dean Witter & Co. 10% Stock Participation Accreting Redemption Quarterly-pay Securities (SPARQS(SM)), mandatorily exchangeable for shares of the common stock of Qualcomm Inc. at maturity. Trading under the symbol MQC, the listing consists of 1.2 million SPARQS issued at $32.62, with a maturity date of November 30, 2003.
SPARQS are similar to other debt securities and make fixed quarterly interest payments, in this case at an annual rate of 10% on the $32.62 principal amount of each SPARQS beginning August 30, 2002. Unlike ordinary debt securities, the SPARQS do not guarantee the return of principal at maturity. In addition, SPARQS are unique in that:
* At maturity, holders of the SPARQS will exchange each SPARQS for one
share of common stock of Qualcomm Inc. (adjusted for corporate events).
* On any scheduled trading day, on or after May 30, 2003, the issuer may
call the SPARQS at certain established cash call prices.
Qualcomm Inc. common stock is traded on the Nasdaq Stock Market under the ticker symbol QCOM. Qualcomm Inc. is not affiliated with the issuer nor involved with this offering in any way.
The securities are issued by Morgan Stanley Dean Witter & Co. The Amex specialist unit for the securities is AIM Securities/Aegis Joint Account.
For further information on MQC, please contact the Capital Markets Group at the American Stock Exchange at (212) 306-1659.
The American Stock Exchange® (Amex®), a subsidiary of the National Association of Securities Dealers, Inc. (NASD®), is the only primary exchange that offers trading across a full range of equities, exchange traded funds (ETFs), including structured products and HOLDRS(SM) and options. In addition to its role as a national equities market, the Amex is the leader in ETF listings, listing 117 ETFs to date, and is the second-largest options exchange in the U.S., trading options on broad-based and sector indexes as well as domestic and foreign stocks. For more information, visit amex.com.
SOURCE: The American Stock Exchange |
