Qualcomm Incorporated (QCOM) Message Board

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Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 155.82

-1.3%

Jan 23 3:59 PM EST

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To: Elroy who wrote (122082)	7/25/2002 6:48:14 AM
From: Wyätt Gwyön	Read Replies (1) of 152472

Options that are granted and expire worthless cost the company nothing. Insurance premiums that are paid for but expire unutilized by the employee (because he didn't get sick) cost the company something you've got it backwards. the analogy is that insurance cos "issue" insurance and charge a premium for it; likewise, cos "issue" options and receive employee services for them. so the way to understand the analogy is to look at the "issuer" and "issuee" in each case. and then ask if what they are "issuing" has value at the time it is issued, independent of whether the "issuance" is eventually utilized.

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